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
Sergio [31]
3 years ago
5

Binder Corporation agreed to build a warehouse for a client at an agreed contract price of $4,000,000. Expected (and actual) cos

ts for the warehouse follow: 2017, $640,000; 2018, $1,600,000; and 2019, $800,000. The company completed the warehouse in 2019. Compute net income for each year 2017 through 2019 using the cost-to-cost method. a. 2017: $200,000 2018: $520,000 2019: $240,000 b. 2017: $640,000 2018: $1,600,000 2019: $800,000 c. 2017: $0 2018: $0 2019: $960,000 d. 2017: $320,000 2018: $320,000 2019: $320,000
Business
2 answers:
gregori [183]3 years ago
8 0

Answer:

Eet

Explanation:

Rainbow [258]3 years ago
6 0

Answer:

The correct option is a. 2017: $200,000 2018: $520,000 2019: $240,000.

Explanation:

The formula for cost to cost method is expected or actual cost incurred to date divided by the total cost of the project or contract.

Therefore, we have:

Total cost = Cost in 2017 + Cost in 2018 + Cost in 2019 = $640,000 + $1,600,000 + $800,000 = $3,040,000

Cost in 2017 contribution to total cost = Cost in 2017 / Total cost = $640,000 / $3,040,000 = 0.21

Cost in 2018 contribution to total cost = Cost in 2018 / Total cost = $1,600,000 / $3,040,000 = 0.53

Cost in 2019 contribution to total cost = Cost in 2019 / Total cost = $800,000 / $3,040,000 = 0.26

Revenue in 2017 = Cost in 2017 contribution to total cost * Contract price = 0.21 * $4,000,000 = $840,000

Revenue in 2018 = Cost in 2018 contribution to total cost * Contract price = 0.53 * $4,000,000 = $2,120,000

Revenue in 2019 = Cost in 2019 contribution to total cost * Contract price = 0.26 * $4,000,000 = $1,040,000

Therefore, net income for each year 2017 through 2019 using the cost-to-cost method can be computed as follows:

Net income for year 2017 = Revenue in 2017 - Cost in 2017 = $840,000 - $640,000 = $200,000

Net income for year 2018 = Revenue in 2018 - Cost in 2018 = $2,120,000 - $1,600,000 = $520,000

Net income for year 2019 = Revenue in 2019 - Cost in 2019 = $1,040,000 - $800,000 = $240,000

Therefore, the correct option is a. 2017: $200,000 2018: $520,000 2019: $240,000.

You might be interested in
Decisions today are becoming _____ complex, due to _____ uncertainty in the decision environment. Question 25 options: 1) less,
denis-greek [22]

The answer is option 4 more and increased.

Explanation:

Decisions today are becoming more complex, due to increased uncertainty in the decision environment.

Decision making is planning, organizing, directing and controlling the functions of a manager at achieving organizational goals.

It provides more information and alternatives, improves the quality of decisions and helps in strengthening the organization.

In the decision phase of the decision making process the managers construct a model that reduces the problem. The decision rights identify and define the framework for how they will be made through operating process and support tools.

6 0
3 years ago
Evaluate the costs and benefits associated with achieving iso 9000/9001 certification status for a specific product- or service-
Nataliya [291]
Coooooolllllllllllllll
8 0
3 years ago
A survey of entrepreneurs who started companies last year shows that while virtually all did substantial preparatory research an
Vitek1552 [10]

Answer: From the given comprehension if the following statement is true, will most seriously weakens the argument: <u><em>Among the entrepreneurs surveyed, those who did not produce formal business plans sought and received a much larger proportion of their capital from investors with whom they had a long-standing business relationship.</em></u>

<em>Here it states that, entrepreneurs who were capable of raising funds without thought/design were able to make the capital because of their relation with investors.</em>

<u><em>Therefore, the correct option here is (c).</em></u>

6 0
3 years ago
As environmental conditions change what occurs
Ugo [173]

Changes in the environment can lead to shortages of food due to no rain to water the plants for herbivores.
species that are used to favourable conditions will die due to environmental unfavourable conditions.
3 0
3 years ago
Beautiful Lawns Company estimates its doubtful accounts by aging its accounts receivable and applying percentages to various age
mr_godi [17]

Answer:

$3,000

Explanation:

Calculation to determine How much bad debts expense will Beautiful Lawns report in 2016

Using this formula

Bad debts expense=Estimated doubtful accounts -Allowance for Doubtful Accounts credit balance

Let plug in the formula

Bad debts expense=$3,600-$600

Bad debts expense=$3,000

Therefore The amount of bad debts expense that Beautiful Lawns will report in 2016 is $3,000

8 0
2 years ago
Other questions:
  • 4. Dairy Co. sells raw cream directly to the public. Maxwell gets sick after consuming some of Fairy Co.’s raw cream. Maxwell su
    7·1 answer
  • An effective marketing objective:
    11·1 answer
  • Which investment has the least liquidity?<br> property<br> stocks<br> a savings account<br> a 401k
    12·1 answer
  • Russell Co. received a $400 utility bill for the current month's electricity. It is not due until the end of the next month whic
    5·1 answer
  • If the absolute value of the price elasticity of demand for a good is .75, the demand for that good is described asa. normal.b.
    6·1 answer
  • Brown Company purchased equipment in 2011 for $150,000 and estimated a $10,000 salvage value at the end of the equipment's 10-ye
    12·2 answers
  • A coase solution to a problem of externality insures ensures that a socially efficient outcome is to:
    5·1 answer
  • In what ways are consumer preferences changing in Ford’s different market segments and geographies? Are consumers able to articu
    5·1 answer
  • Bloomfield Bakers accounts for its investment in Clor Confectionary under the equity method. Bloomfield carried the Clor investm
    9·1 answer
  • Ok, I actually need a lot of help- 30 points to whoever can
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!