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Harvard University - MGMT 1000REQUIRED HOMEWORK - MODULE 5.

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5/10/2018 REQUIRED HOMEWORK - MODULE 5 https://mybusinesscourse.com/platform/mod/quiz/review.php?attempt=1834252 1/9 My Subscriptions / Courses / MGMT E-2600:01-Financial Statement Analysis [SPRING ... 2018] / Module 5 / REQUIRED HOMEWORK - MODULE 5 Started on Thursday, May 10, 2018, 3:03 PM State Finished Completed on Thursday, May 10, 2018, 3:13 PM Time taken 10 mins 13 secs Grade 4.00 out of 4.00 (100%) https://www.coursehero.com/file/30887330/REQUIRED-HOMEWORK-MODULE-5pdf/ This study resource was shared via CourseHero.com5/10/2018 REQUIRED HOMEWORK - MODULE 5 https://mybusinesscourse.com/platform/mod/quiz/review.php?attempt=1834252 2/9 QUESTION 1 Correct 1.00 points out of 1.00 Computing Revenues under Long-Term Contracts Camden Corporations agreed to build a warehouse for a client at an agreed contract price of $ 900,000. Expected (and actual) costs for the warehouse follow: 2016, $202,500; 2017, $337,500; and 2018, $135,000. The company completed the warehouse in 2015. Compute revenues, expenses, and income for each year 2016 through 2018, and for all three years combined, using the cost-to-cost method. Cost-to-Cost Method % of total Costs expected Revenue Year incurred costs recognized Income 2016 $ 202,500  30  % $ 270,000  $ 67,500  2017 337,500  50  % 450,000  112,500  2018 135,000  20  % 180,000  45,000  Total $ 675,000  $ 900,000  $ 225,000  Cost-to-Cost Method Completed Contract Year Costs incurred Percent of total expected costs Revenue recognized (percentage of costs incurred total contract amount) Income (Revenue – Costs incurred) Revenue recognized Income 2016 $202,500 30% $270,000 $67,500 $ 0 $ 0 2017 337,500 50% 450,000 112,500 0 0 2018 135,000 20% 180,000 45,000 900,000 225,000 [Show More]

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