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
dybincka [34]
3 years ago
6

A construction company entered into a fixed-price contract to build an office building for $32 million. Construction costs incur

red during the first year were $9 million and estimated costs to complete at the end of the year were $21 million. The company recognizes revenue over time according to percentage of completion. How much revenue and gross profit or loss will appear in the company’s income statement in the first year of the contract? (Enter your answer in whole dollars.)
Business
1 answer:
Delicious77 [7]3 years ago
8 0

Answer:

company gained a gross profit of $2 million

Explanation:

Data provided in the question;

Contract price to build an office = $32 million

Construction costs incurred during the first year = $9 million

Estimated costs to complete at the end of the year = $21 million

Therefore,

Total cost incurred to complete the construction of the office at the end of the first  year

=  Construction costs incurred during the first year + Estimated costs to complete at the end of the year

= $9 million + $21 million

= $30 million

Thus,

The revenue generated by the company = Contract price - cost incurred

= $32 million - $30 million

= $2 million

since the revenue is positive, hence the company gained a gross profit of $2 million

You might be interested in
Are marketing and sales the same in marketing
JulijaS [17]
No. They are not the same.


Pls mark brainliest.
6 0
2 years ago
In a study to investigate the effects of alcohol on reflexes, some students were given three bottles of beer and some were given
Hatshy [7]
Idk I’m so clueless what are the choices
3 0
3 years ago
Making adjustments to general ledger accounts is an application of the Matching Expenses with Revenue accounting concept.
svetoff [14.1K]

Answer:

A. True

Explanation:

This two principles i.e matching principle and the revenue recognition principle are interrelated to each other

The matching principle is that the principle in which the expenses of a particular period and the revenues incurred of a particular year should be matched.  

Whereas the revenue recognition principle stated that whenever the revenue is earned it should be recorded whether cash is received or not  

So for recording the adjusting entries, these two principles are required

6 0
3 years ago
Northern Organic Farms is considering a project which will produce annual sales of $975,000 and increase cash expenses by $848,0
stealth61 [152]

Answer:

B) $114,000

Explanation:

To calculate the operating cash flows using the top down approach we can use the following equation:

operating cash flow = increase in total sales - increase in total expenses - increase in taxes paid

operating cash flow = $975,000 - $848,000 - ($154,000 - $141,000) = $975,000 - $848,000 - $13,000 = $114,000

I didn't include depreciation since it is normally included to calculate the increase in taxes but taxes were already given.

5 0
3 years ago
Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstream
Julli [10]

Answer:

d. Charities

Explanation:

Charity is one  the ways of solving or dealing with externalities that affect a society, without the intervention of the government. This involves the effort of a charitable organization in raising enough money to do something useful for the society to mitigate such externalities affecting it.

As stated in the question above, we can see that the environmental organization is a charitable organization, who have taken it upon itself to advance the course of campaigning against far’s pollution. It is a nonprofit organization that raises money through donations, in order to help finance the campaign. Their main objectives focused on the well-being  the local community.

5 0
3 years ago
Other questions:
  • A mining company is considering a new project. Because the mine has received a permit, the project would be legal; but it would
    9·1 answer
  • Whats a career that's fun and pays good?
    15·2 answers
  • A manufacturing company has a beginning finished goods inventory of $27,300, cost of goods manufactured of $57,500, and an endin
    15·1 answer
  • You want to buy a new sports coupe for $75,700, and the finance office at the dealership has quoted you a loan with an APR of 8.
    6·1 answer
  • At January 1, Year 1, under its restricted stock unit (RSU) plan, Label Corporation grants RSUs representing 10,000 of its $1 pa
    13·1 answer
  • Using examples discuss the skills required for entrepreneurship​
    15·1 answer
  • Anyone got discord? I'm 17
    12·2 answers
  • OFFERING 20 POINTS Whitney's proposal to build 10,000 guns relied on what two important elements found in the modern manufacturi
    10·1 answer
  • Today, _______ recognize LLCs and provide both procedural (formation) and internal default rules (in the event the parties are u
    8·1 answer
  • Expansionary monetary policy is usually has real expansionary short-run effects. as prices adjust, the long-run impact of?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!