Working Capital Investment Calculation

Working capital investment is equal to the change in working capital, excluding cash, cash equivalents, notes payable, and the current portion of long-term debt…

So if you you’re doing a problem and you come across a balance sheet with a line item labeled “Short-Term Debt” … that should be excluded?

only account payable from right side

inventory and account receivable from left side

short term debt is net borrowing (financing flow which increases FCFE)

note payable is net borrowing

current portion of long term debt is long term debt