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quester [9]
3 years ago
5

Bergeron is a local manufacturer of off-shore drilling platforms. In 2020, Bergeron entered into a contract to construct a drill

ing platform, which will be placed in the North Atlantic Ocean. The total contract price is $5,000,000, and Bergeron estimates the total construction cost at $2,000,000. Actual costs incurred in 2020 are $600,000. If Bergeron uses the completed contract method, the gross profit for 2020 is
Business
1 answer:
forsale [732]3 years ago
6 0

Answer:

$900,000

Explanation:

The first step is to calculate the percentage completed

= 600,000/2,000,000

= 0.3

The revenue can be calculated as follows

= 5,000,000 × 0.3

= 1,500,000

Therefore the gross profit for 2020 can be calculated as follows

=1,500,000 -600,000

= $900,000

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Virty [35]

Answer:

The correct answer is D

Explanation:

Cash flow method is the method where the costs or the expenses are moved or shifted from the starting to the end of the firm. The flow of expenses does not apply to the inventory but also involve the other factors in the extra processes to which the cost is attached.

So, the baker purchased the inventory items at different prices and then the sold the one inventory item at profit, so the amount of the cash flow from the operating activities will not affected through the method of cash flow.

8 0
3 years ago
Journal Entry
Contact [7]

Answer:

Explanation:

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4 0
2 years ago
You are more effective when you do not have too many things happening at once?<br> agree or disagree
spin [16.1K]

Hello,


I disagree with this statement, from my personal experience of ADHD i work better and more effectively under pressure becasue i dont have time to daydream, slack off, or get behind becasue you are always moving.\


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4 0
2 years ago
Visual merchandising is three-dimensional and real, which is more effective than flat drawings or photos. True Or False
Dmitry_Shevchenko [17]
I would assume true, visual merchandising is more of displaying products and flat drawing aren’t as interactive.
7 0
2 years ago
Recently many large commercial and retail banks have been choosing to increase the amount of excess reserves they hold in the Fe
xenn [34]

Answer:

A. True

Explanation:

Large commercial and retail banks have been choosing to increase the amount of excess reserves they hold in the Federal Reserve, and this has caused an increase in the money multiplier and the money supply.

This is true as an increase in the Federal reserves would lead to increased room for loan and lending facilities which would also help increase the money supply of the populace.

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