Business, 23.06.2020 23:01 alonnachambon

In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2021 2022 2023
Cost incurred during the year $ 2,016,000 $ 2,808,000 $ 2,613,600
Estimated costs to complete as of year-end 5,184,000 2,376,000 0
Billings during the year 2,180,000 2,644,000 5,176,000
Cash collections during the year 1,890,000 2,500,000 5,610,000
Westgate recognizes revenue over time according to percentage of completion
Assume that Westgate Construction’s contract with Santa Clara County does not qualify for revenue recognition over time. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.

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Answer from: payshencec21

Explanation:

2021 2022 2023

Bills during the year 2,180,000 2,644,000 5,176,000

Cost incurred in the year 2,016,000 2,808,000 2,613,600

Cumulative cost to date 2,016,000 4,824,000 7,437,000

Estimated cost to complete 5,184,000 2,376,000 0

Estimated total cost 7,200,000 7,200,000 7,437,000

percentage completion

2,016,000/7,200,000*100 =28%

4,824,000/7,200,000*100 = 67%

7,437,000/7,437,000 *100=100%

Percentage Completion 28 67 100

Contract price 10,000,000

Less cumulative cost (7,437,000)

Gross profit 2,563,000

Contract value 2021 10,000,000* 28 % =2,800,000

2022 10,000,000* 67% = 6,700,000

2023 10,000,000*1005 = 10,000,000

Contract value 2,800,000 6,700,000 10,000,000

less revenue recognized 2,800,000 6,700,000

2,800,000 3,900,00 3,300,000

less cost incurred in the year 2,016,000 2,808,000 2,613,000

Profit recognized 784,000 1,092,000 687,000

Answer from: Quest

answer: 11/12

step-by-step explanation: 4 1/4 and 3 1/3 is equivalent to 4 3/12 and 3 4/12. 4 3/12 - 3 4/12 =11/12

Answer from: Quest

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

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