a. Fixed assets :
Its plants, machinery, equipment, land etc.
b. Current assets:
Its debtors, cash, stock, prepayments, short term marketable securities etc.
a. Interest must not be paid on creditors, no reason to pay them.
b. It can make other things with that money, where it will earn some more money.
c. Firm has to have cash, e.g. because it might need to repair some of its equipment very quickly.
d. Cash increases firm's security against uncertain things.
Net current assets are the same as working capital. By comparing the amount of working capital and current liabilities shareholders and firms wanting to give credit can find out how well firm is able to meet current claims. Also firm itself can see whether it is wasting money by keeping it under working capital or not.