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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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ANEK [815]

Answer:

Total estimated bad debts = $9,400

Explanation:

days outstanding     A/c Receivable    %        estimate

0-30                           $77,000              1           $770

31-60                          $46,000              4         $1,840

61-90                           $39,000              5        $1,950

91-120                          $23,000              8         $1,840

over 120                      $15,000               20       $3,000

Total                            200,000                          $9,400                      

4 0
2 years ago
Read 2 more answers
The cash operating cycle for a merchandiser begins with cash purchases of merchandise and ends with _____.
netineya [11]

The cash operating cycle for a merchandiser begins with cash purchases of merchandise and ends with receipt of cash.

<h3><u>What is a merchandise?</u></h3>
  • Any form of items, including those used for personal or professional purposes, as well as goods sold to the general public (retail) or other enterprises, are referred to as merchandise (wholesale).
  • 'Freebies', or promotional things like the bespoke drink bottles in this example that are given away or not charged for, can also be referred to as merchandise.
  • Calendars, magnets, wall art, stationery, greeting cards, textiles, badges, and a wide variety of other goods may be included in this category.
  • A T-shirt with a slogan or logo that a political party distributes to voters during an election campaign or a calendar with a logo that a supplier offers its clients at the end of each year are two examples of freebie products.

Buying merchandise can be done with cash or on credit. The accounts involved in the transaction are the purchases account and the cash account if goods are paid for in cash. It debits the purchases account and credits the cash account.

Know more about Merchandise with the help of the given link:

brainly.com/question/15546663

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8 0
1 year ago
North Company has completed all of its operating budgets.The sales budget for the year shows 50,600 units and total sales of $2,
atroni [7]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The sales budget for the year shows 50,600 units and total sales of $2,317,800.

The total unit cost of making one unit of sales is $22.

Selling and administrative expenses are expected to be $304,000.

Income taxes are estimated to be $270,180.

Income statement:

Sales= 2,317,800

COGS= (22*50,600)= (1,113,200)

Gross profit= 1,204,600

Selling and administrative= (304,000)

Tax= (270,180)

Net operating profit= $630,420

5 0
3 years ago
Delta Company produces a single product. The cost of producing and selling a single unit of the product at the company’snormal a
iogann1982 [59]

I assumed you typo 821 by $21 per unit, then the answer will be

1-  financial disadvantage of accepting the special order is loss of $60,000

2- a minimum selling price for these units should be $14.00

Explanation:

Loss of $60,000 = 15,000 x (14,000 – (5.1+3.8+1+4.2+1.5+2.4))

a minimum selling price for these units is $14.00 per unit because it’s the price the company can earn if accept a special order, though lower than cost of producing and selling at $18.00

6 0
3 years ago
When a person incorporates unimportant events within a delusional framework and reads personal significance into trivial activit
mafiozo [28]

Ideas of reference.

When someone consists of unimportant occasions inside a delusional framework and reads private importance into trivial activities of others it's miles called thoughts of reference. it's far one of the symptoms of schizophrenia and different delusional disorders.

Ideas of reference or delusions of reference involve someone having a notion or perception that irrelevant, unrelated or harmless things inside the world are regarding them without delay or have special non-public significance.

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5 0
1 year ago
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