Reference no: EM133034394
Question - Construction Contracts - Winter Company constructs office buildings in Ellensburg. It began a $50,000,000, 3-year contract on January 1, 2018. The following information is available regarding this contract.
|
2018
|
2019
|
2020
|
Costs incurred during current year
|
$12,000,000
|
$20,000,000
|
$13,000,000
|
Estimated costs to complete at year end
|
28,000,000
|
10,000,000
|
0
|
Progress billings during year
|
10,000,000
|
18,000,000
|
22,000,000
|
Collections on billings during year
|
8,000,000
|
17,000,000
|
25,000,000
|
Required -
a. Assuming Winter uses the percentage-of-completion method, calculate the gross profit to be recognized in 2018 and 2019.
b. Assuming Winter uses the percentage-of-completion method, indicate how the contract would be presented on Winter's income statement for the year ended December 31, 2019.
c. Assuming Winter uses the completed-contract method, calculate the gross profit to be recognized in 2020.
d. Assuming Winter uses the completed-contract method, indicate how the contract would be presented on Winter's balance sheet (Accounts Receivable and Construction-in-process) for the year ended December 31, 2019.
e. Assuming Winter uses the completed-contract method and billings in 2019 are $40,000,000 instead of $18,000,000, what will be the effect on the balance sheet in 2019?
What is the lowest price that laura would be willing
: Assuming a financial perspective, what is the lowest price that Laura would be willing to accept for this 5,000 order from Jake
|
What is Glenn gain or loss recognized on the exchange
: Glenn also received $2,000 of office equipment in the transaction. What is Glenn's gain or loss recognized on the exchange
|
Write avr assembly code to transmit precisely timed patterns
: Morse Code Transmitter - Write AVR assembly code to transmit precisely timed patterns and Combine the timing and individual patterns to create Morse code
|
What is the company debt-equity ratio
: The company's cost of equity is 12 percent and its pretax cost of debt is 7.8 percent. The tax rate is 22 percent. What is the company's debt-equity ratio
|
What will be the effect on the balance sheet
: Assuming Winter uses the completed-contract method and billings in 2019 are $40,000,000 instead of $18,000,000, what will be the effect on the balance sheet
|
At what price would michael be indifferent
: Rents from the property will be $24,000 and he expects them to increase at a rate of 5% per year annually. At what price would Michael be indifferent
|
What is the after-tax salvage value
: The project requires an initial investment in net working capital of $4001000. The marginal tax rate is 25 percent. What is the after-tax salvage value
|
Compute the payback period
: Managers estimate that this investment will have a 10-yeat life and generate net cash inflows of $310,000 the first year, Compute the payback period
|
Calculate the volume in cubic millimeters
: Calculate the volume in cubic millimeters represented by each square and Calculate and record below the average cell count (per square)
|