Prepare the balance sheet at the end of each year

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Reference no: EM131341089

In January 2002 Emanuele & Lollo Co undertakes a four-year project at a contracted price of EUR 100 million that will be billed in four equal annual instalments of EUR 25 million each year over the project's life. The project is expected to cost EUR 90 million. Over the life of the project, the billings, cash receipts and cash outlays related to the project are:

*Amounts in thousands of euro*	2002	2003	2004	2005
Billings	25,000	25,000	25,000	25,000
Cash received	20,000	27,000	25,000	28,000
Cash paid	18,000	36,000	27,000	9,000

(a) Show the cash flows from the project each year.

(b) Prepare the income statement for each year.

(d) Calculate some key financial ratios.

Reference no: EM131341089

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