Rissy Inc. had the following components of working capital last year: Accounts receivable (start: $23,000 & end: $23,000); Inventory (start: $18,000 & end: $17,000); Accounts Payable (start: $11,000 & end: $13,000). What was the change in net working capital during the year?

Rissy Inc. had the following components of working capital last year: Accounts receivable (start: $23,000 & end: $23,000); Inventory (start: $18,000 & end: $17,000); Accounts Payable (start: $11,000 & end: $13,000). What was the change in net working capital during the year?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 3DQ

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Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.

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