1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
scoundrel [369]
3 years ago
6

Camden Corporations agreed to build a warehouse for a client at an agreed contract price of $ 900,000. Expected (and actual) cos

ts for the warehouse follow: 2016, $202,500; 2017, $337,500; and 2018, $135,000. The company completed the warehouse in 2018. Compute revenues, expenses, and income for each year 2016 through 2018, and for all three years combined, using the cost-to-cost method.
Business
1 answer:
weqwewe [10]3 years ago
4 0

Answer:

Key figures:

2016:

Revenue = $270,000

Expenses = $202,500

Income = $67,500

2017:

Revenue = $450,000

Expenses = $337,500

Income = $112,500

2018:

Revenue = $180,000

Expenses = $135,000

Income = $45,000

Explanation:

Under this method, percentage of work completed is determined using the following <u>formula:</u>

<em>Percentage of work completed = (Total Expenses incurred on the project till the close of the accounting period) ÷ (Total Estimated Cost of the Contract)</em>

Total estimated cost = $202,500 + $337,500 + $135,000 = $675,000

<u>2016:</u>

Percentage of work completed = ($202,500 ÷ $675,000)×100 = 30%

Expenses in 2016 = $202,500 (answer)

Revenue in 2016 = $900,000 × 30% = $270,000 (answer)

Income in 2016 = Revenue - Expenses

Income in 2016 = $270,000 - $202,500

Income in 2016 = $67,500 (answer)

<u>2017:</u>

Percentage of work completed = ($337,500 ÷ $675,000)×100 = 50%

Expenses in 2017 = $337,500 (answer)

Revenue in 2017 = $900,000 × 50% = $450,000 (answer)

Income in 2017 = Revenue - Expenses

Income in 2017 = $450,000 - $337,500

Income in 2017 = $112,500 (answer)

<u>2018:</u>

Percentage of work completed = ($135,000 ÷ $675,000)×100 = 20%

Expenses in 2018 = $135,000 (answer)

Revenue in 2018 = $900,000 × 20% = $180,000 (answer)

Income in 2018 = Revenue - Expenses

Income in 2018 = $180,000 - $135,000

Income in 2018 = $45,000 (answer)

You might be interested in
What is your proudest accomplishment and why
xeze [42]

Answer: Loving and accpeting myself for who I am

Explanation:

We live in a world where is hard to fill like you are accepted or up to society's "standards" overtime I have come to love who i am and appreicate myself its taken alot of effort and trust in myself which is why i feel its my proudest accomplishment! :))

6 0
3 years ago
Consider four different stocks, all of which have a required return of 15 percent and a most recent dividend of $4.20 per share.
natka813 [3]

Answer:

Dividend yield for W = 5%

Dividend yield for X = 15%

Dividend yield for Y = 20%

Dividend yield for Z = 4.6%

Explanation:

For a constant growth stock Price =\frac{D1}{r-g}

If r is made subject of formula;  r=\frac{D1}{Price}+g = div yield + growth rate

For Stock W, given r = 15% and g= 10%; dividend yield = 15%-10%=5%

For Stock X, given r = 15% and g= 0%; dividend yield = 15%-0%=15%

For Stock Y, given r = 15% and g= -5%; dividend yield = 15%-(-5)%=20%                                      

For Stock Z, the price of the stock today is calculated as follows:

Price of the stock today = \frac{D1}{(1+ke)^1}+\frac{D2}{(1+ke)^2}+\frac{P2}{(1+ke)^2}.

where P2= \frac{D3}{ke-g}

Price of the stock today = \frac{4.2(1.2)}{(1+0.15)^1}+\frac{4.2(1.2)^2}{(1+0.15)^2}+\frac{4.2(1.2)^2(1.1)}{(0.15-0.1)(1+0.15)^2}=109.57

Therefore dividend yield =\frac[D1}{Price} = \frac{4.2(1.2)}{109.57}=4.6%

5 0
3 years ago
In what ways does the format of a statement of financial or position under ifrs often differ from a balance sheet presented unde
Amiraneli [1.4K]
Umm can someone answer this please because i need help on this as well
7 0
3 years ago
In the Income-Expenditures model, it is assumed that investment is independent of the level of (current) income. This is:
____ [38]

Answer:

I'm not sure what this question is about, but the concept of the income expenditures model and its components is the following:

In the income (or aggregate) expenditures model, its author (Keynes) established certain assumptions in order to analyze how the economy works as a whole. His assumptions included that investment, government spending and net exports were all independent from income level.

When the economy is at equilibrium, total expenditures (GDP) = income level = consumption + government + investment + net exports

Another important assumptions are:

  • marginal propensity to consume (MPC) + marginal propensity to save (MPS) = 1
  • consumption = autonomous consumption + [MPC x (total income level - taxes)]

Savings = investment increase when disposable income increases or real GDP increases.

This model is used to explain the relationship between labor and production levels, and how they are affected by the economy's total expenditures. By increasing expenditures, the demand for labor and products/services will increase.

4 0
3 years ago
Question 16 of 25
Sveta_85 [38]

Answer: B. Foreign cars become more expensive.

Explanation: The tariff slapped on imported goods such as cars and other foreign commodities will raise the overall cost of the product on the side of the seller and definitely the final selling price of such product to the consumers. This is used to raise revenue for the government and also to encourage the manufacture, adoption and support for locally manufactured products. Locally manufactured substitute will tend to be cheaper and the additional tariff may put importers and consumers off, and hence settle for cheaper locally made alternative.

8 0
3 years ago
Other questions:
  • Applicants describe how they handled specific problems and situations in previous jobs in a(n) ________ interview.
    15·1 answer
  • A television advertisement for Chick-fil-a shows several cows eating grass in a large field. The camera zooms out to show that t
    11·1 answer
  • A newly established company, The Malt Company, wishes to enter the beer market in Country A by building a new brewery there. Man
    8·1 answer
  • Quake Inc., a software giant, outsources its customer relationship management amenity to Zeins Inc. The contract between the two
    5·1 answer
  • How do you explain the fact that in the business world basically good people sometimes act immorally?
    14·1 answer
  • The Federal Deposit Insurance Corporation (FDIC) insure account holder’s accounts for up to ___.
    15·1 answer
  • Sales $2,150,000 Manufacturing costs: Direct materials $960,000 Direct labor 420,000 Variable manufacturing cost 156,000 Fixed m
    9·1 answer
  • (THIS IS FOR THE OFFICE FANS!!)
    9·2 answers
  • The ability to continue after a disaster of some kind is a requirement of Security Rule. What item is considered part of the con
    8·1 answer
  • dakota, a manager for a large trucking company, wants to evaluate his truck drivers but is unsure of which type of performance a
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!