Answer:
Multiple Answers
Explanation:
1. Over Time
a) Begin w/ Percentage of Revenue Method:
Actual Costs to Date / Estimated Total Costs = % Complete to Date
2021:
$352,000 / ($352,000 + $1,408,000) =
$352,000 / $1,760,000 = 20%
2022:
($352,000 + $2,025,000) / ($352,000 + $2,025,000)
$2,377,000 / $2,377,000 = 100%
b)
2021:
Construction Revenue: (20% * $2,650,000) = $530,000
Less: Construction Expenses: $352,000
Gross Profit: $178,000
c)
2022 (subtract out 2021 costs):
Construction Revenue: $2,650,000 - $530,000 = $2,120,000
Less: Construction Expenses: $2,377,000 - $352,000 = $2,025,000
Gross Profit: $273,000 - $178,000 = $95,000
2. Upon Completion:
2021:
Revenue: $0
Gross Profit: $0
2022:
Revenue: $2,650,000
Gross Profit: $273,000
3. Over Time:
Current Assets:
A/R: $470,000 - $405,000 = $65,000
Costs & Profits in Excess of Billings: $530,000 - $470,000 = $60,000
4. Upon Completion:
Current Assets:
A/R: $470,000 - $405,000 = $65,000
Current Liabilities:
Billings in Excess of Profit & Cash: $470,000 - $352,000 = $118,000
