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pshichka [43]
4 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]4 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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When McDonald's started customizing its product offerings to suit differing regional tastes, such as offering vegetarian product
bezimeni [28]

Answer:

The correct answer is (A) Localization strategy

Explanation:

It is one of the most important strategic decisions that companies make. Localization can also influence other costs such as taxes, wages, raw materials and income. Companies make location decisions infrequently, usually because demand has exceeded the current capacity of the plant or due to changes in labor productivity, exchange rate, costs or local attitudes. Companies also relocate their manufacturing facilities or services due to demographic changes or consumer demand. Location alternatives include (1) expanding an existing installation instead of moving it; (2) maintain the current sites while opening facilities somewhere else, or (3) close existing facilities and move to a new location.

The location decision often depends on the type of business. For industrial location decisions, the usual strategy is to minimize costs, although innovation and creativity can also be critical. For retail organizations or professional services, the strategy focuses on maximizing revenue. However, the warehouse location strategy can be guided by a combination of costs and speed of delivery. The objective of the location strategy is to maximize the benefit of the location for the company.

3 0
4 years ago
Given the following information about Elkridge Sporting Goods, Inc., construct a balance sheet for June 30, 2013. On that date t
OLga [1]

Answer:

<em>Retained Earnings = 109,909</em>

Explanation:

\left[\begin{array}{cccc}cash&25,135&AP&67,855\\AR&43,758&NP&36,454\\inventory&172,500&Long-term&222,300\\fixed \:assets&332,300&Common\: Stock&150,000\\other \: assets&13,125&RE&110,209\\Total Assets&586,818&Total L+E&586,818\\\end{array}\right]

<u>First </u>

We add all the assets together. 586,818

<u>Then</u>

we add the lliabilities and common stock. 476,909

<u>Finally</u>

We use the accounting equation to solve for RE

Assets = Liab + Equity

586,818 = sum of liab and equity accounts

we know that all the accounts, except RE add to 476,909

586,818 = 476,909 + RE

586,818 - 476,909 = RE

RE = 109,909

5 0
3 years ago
During 2018, Raines Umbrella Corp. had sales of $750,000. Cost of goods sold, administrative and selling expenses, and depreciat
lilavasa [31]

Answer:

New Long term debt = $8000

Explanation:

The computation of the net new long term debt is given below:

Sales $750000

Less: Expenses:  

COGS -$540,000

Selling expenses -$85,000

Depreciation -$190,000

Interest- $65,000

Total Expenses -$880,000

Net Loss -$130,000

Add: Non- cash expense ie. Depreciation +$190,000

Net Cash flow $60,000

Less: Cash Dividend declared -$68,000

New Long term debt = $8000

8 0
4 years ago
Give 3 sample of best practice, how airline can improve "Cost" efficiency?
valentina_108 [34]

It is called "cost efficiency" to the way in which a company, through specific commercial organization actions, manages to reduce the costs necessary to obtain a certain profit.

Thus, they seek to minimize the costs and operational losses of the company, with the aim of maximizing profits.

In this way, 3 ways in which an airline could increase its cost efficiency are:

  1. fly to places with high demand, reducing presence in not so popular destinations.
  2. reduce the time on the ground for each plane, so that it generates money almost constantly.
  3. perform optimal maintenance on each plane, to avoid breakages.

Learn more about efficiency in brainly.com/question/6672666

3 0
3 years ago
Xanadu Industries manufactures and sells the same calipers as Utopia Industries. Employee wages account for 35 percent of the co
san4es73 [151]

Answer: E) Many people who work for manufacturing plants live in areas in which the manufacturing plant is the only source of employment.

Explanation:

The scenario that'll make the labor union accept Richard's suggestion to lower the wages is when many people who work for manufacturing plants live in areas in which the manufacturing plant is the only source of employment.

The reduction in wages by Xanadu Industries wouldn't bring about loss.of workers as the manufacturing plant is the only industry in the area. Another way the company can reduce cost is through the reduction in its raw materials cost. If the employees aren't satisfied due to the reduction in wages, they can look for employment at Utopia Industry.

Therefore, the correct option is E.

7 0
3 years ago
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