I'm working on a transaction where I'm receiving different opinions on how to calculate Net Working Capital. The company accrues year-end bonuses in December and pays them in March, so NWC is 20% less in Dec, Jan, and Feb, which weighs down the TTM average. My CPA is telling me I shouldn't be including the year-end bonus accrual in the calculation because it should not be viewed as a current liability.
There's a $100k difference in what the seller owes me for the NWC calculation when I include it versus excluding it. I haven't been able to find anything online arguing one side versus the other, so if someone has something they can send me, please include it in your comment. Thanks!
Net Working Capital

by a searcher from Babson College - F.W. Olin Graduate School
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