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pshichka [43]
3 years ago
12

Assume General Electric Company agreed in May 2016 to construct a nuclear generator for NSTAR, a utility company serving the Bos

ton area. The contract price of $750 million is to be paid as follows: $250 million at the time of signing; $250 million on December 31, 2016; and $250 million at completion in May 2017. General Electric incurred the following costs in constructing the generator: $240 million in 2016 and $360 million in 2017.
a. Compute the amount of General Electric's revenue, expense, and income for both 2016 and 2017, and for both years combined, under the cost-to-cost revenue recognition method.
Enter dollar amounts in millions.
Business
1 answer:
aalyn [17]3 years ago
8 0

Answer:

2016: $300 million; 40%; $60 million

2017: $450 million; 60%; $90 million

Explanation:

Total costs:

= Costs incurred in 2016 + Costs incurred in 2017

= $240 + $360

= $600

In 2016:

Percent of total excepted costs:

= Costs incurred in 2016 ÷ Total costs

= $240 ÷ $600

= 0.4 or 40%

Revenue recognized:

= Percent of total excepted cost × Contract price

= 0.4 × $750 million

= $300 million

Income = Revenue recognized - Costs incurred in 2016

             = $300 million - $240 million

             = $60 million

In 2017:

Percent of total excepted costs:

= Costs incurred in 2017 ÷ Total costs

= $360 ÷ $600

= 0.6 or 60%

Revenue recognized:

= Percent of total excepted cost × Contract price

= 0.6 × $750 million

= $450 million

Income = Revenue recognized - Costs incurred in 2017

             = $450 million - $360 million

             = $90 million

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Moshi and her best friend have phrases they use with each other that have specific meanings. For example, when they’re upset abo
Bingel [31]

Answer:

Moshi and her best friend have agreed on the meanings of each of the symbols.

Explanation:

A symbol is a thing that is used to represent something else, particularly when a physical object is used to represent an abstract thing.

Therefore, those phrases used by Moshi and her best friend are symbols they have jointly agreed upon to use as representations specific meanings. They are effective because of their joint agreement on them. Any other phrases that they have not jointly agreed upon will have no meaning to them and they will not be effective.

4 0
3 years ago
Refer to lynn bernerd, inc. initially, the managers believed that ____ would be the best option for entering the foreign market.
mojhsa [17]
<span>They originally felt that licensing would be the best first step. By letting other companies use their product in exchange for paying royalty fees, Bernerd was licensing its product out for those companies to take advantage of the company's name.</span>
7 0
3 years ago
The current price of a non-dividend-paying stock is $40. Over the next year it is expected to rise to $42 or fall to $37. An inv
jek_recluse [69]

Answer:

D. $0.93

Explanation:

Upmove (U) = High price/current price

                    = 42/40

                    = 1.05

Down move (D) = Low price/current price

                          = 37/40

                          = 0.925

Risk neutral probability for up move

q = (e^(risk free rate*time)-D)/(U-D)

  = (e^(0.02*1)-0.925)/(1.05-0.925)

  = 0.76161

Put option payoff at high price (payoff H)

= Max(Strike price-High price,0)

= Max(41-42,0)

= Max(-1,0)

= 0

Put option payoff at low price (Payoff L)

= Max(Strike price-low price,0)

= Max(41-37,0)

= Max(4,0)

= 4

Price of Put option = e^(-r*t)*(q*Payoff H+(1-q)*Payoff L)

                               = e^(-0.02*1)*(0.761611*0+(1-0.761611)*4)

                               = 0.93

Therefore, The  value of each option using a one-period binomial model is 0.93

8 0
3 years ago
Verbal orders by telephone or in person are discouraged. In cases where verbal orders are necessary, which of the following is t
oksano4ka [1.4K]

Answer:

The person receiving the order should read it back to ensure that the order is correct.

Explanation:

In business communication the best way to communicate orders is in written form since this allows for clear conveyance of the message in the order. Using verbal means to give orders over the phone is prone to misinterpretation and there is less accountability when the subordinate claims he did not understand the order.

To curtail this it is advisable for the recipient of the order to repeat the order. This shows it has been clearly understood.

5 0
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Integrated carriers (truck-air) like UPS and Federal Express are able to capture a larger market share because they:
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Options :

A. utilize their own aircraft.

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D. all of the above

Answer:

D

8 0
3 years ago
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