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Arte-miy333 [17]
3 years ago
10

On March 15, 2017, Gilbert Construction contracted to build a shopping center at a contract price of $220 million. The schedule

of expected (which equals actual) cash collections and contract costs follows:
Year Cash Collections Cost Incurred
2017 55 million $36 million
2018 88 million 81 million
2019 77 million 63 million
Total $220 million $180 million

Required:
a. Calculate the amount of revenue, expense, and net income for each of the three years 2017 through 2019, and for all three years combined, using the cost-to-cost revenue recognition method.
b. Discuss whether or not the cost-to-cost method provides a good measure of this construction com- pany's performance under the contract.
Business
1 answer:
Margaret [11]3 years ago
3 0

Answer:

a.                                                              2017          2018           2019

Expenses incurred for the year A     36 million   81 million    63 million

Estimated total cost B                       180 million  180 million  180 million

% Completion (A/B) C                               20%           45%           35%

Revenue recognized for the D          44 million   99 million   77 million

period (220 million * C)

Gross profit (D-A)                              $8 million  $18 million $14 million

b. Yes, the cost-to-cost method provides a good measure of this construction company's performance under the contract.

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To add, the corporate expense that alters with the company’s production output is called the variable cost.

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8,3

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5 0
3 years ago
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Simon Company’s year-end balance sheets follow.
klemol [59]

Answer:

The answer is given below;

Explanation:

Days sales in inventory-2017= Average Inventory/Cost of goods sold*365

                                =(115,000+85,000)/2/(458,674)/365

                                =(100,000/458,674)*365

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Days sales inventory 2016= (85,000+56,000)/2/(385,686)*365

                                            =(70,500/385,686)*365

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3 years ago
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The interference of personality or status differences is called personality traits, that is, a way developed by psychologists to organize different personalities according to certain dimensions.

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This is one of the most accepted approaches today, which divides the personality into the following traits:

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Each of the traits encompasses different personality facets that help identify which one individual has more or less of compared to another individual.

Therefore, today's organizations need to understand the personality traits of their employees through testing and analysis, to better understand the motivation of each individual and create an organizational culture based on diversity and development.

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3 0
2 years ago
Ariel holds a $5,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stockâs beta, is list
Natali5045456 [20]

Answer:

1) Flitcom Corp (Beta = 0.60)

2) Tobotics Inc. (s.d. = 11%)

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