started ork on a if the cumulative inflation reaches or exceeds 26%, the contact price shall be adjusted upwards by 10%. Cost escalations on the contracts are probable as to recovery. Additional information on the contract is shown below: 2022 P18,000,000 6,000,000 26% Cost incurred to date Estimated cost to complete Cumulative inflation rate How much is realized profit in 2022? 2021 P9,600,000 14,400,000 18%
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- Hh1. In 2020, Solid Construction Co. (SCC) began work on a two-year fixed-price contract project. SCC uses the percentage-of-completion method to account for such projects and provides you with the following information (dollars in millions): ACCOUNT RECEIVABLE (FROM CONSTRUCTION BILLINGS) $37.5 ACTUAL CONSTRUCTION COSTS INCURRED IN 2020 $135 CASH COLLECTED ON PROJECT DURING 2020 $105 CONSTRUCTION IN PROGRESS, 12/31/2020 $207 ESTIMATED PERCENTAGE OF COMPLETION DURING 2020 60% How much cash remains to be collected by SCC on the project?Initial project set-up costs are estimated to be SEK15m (year 0-2023). Further estimated operating costs and projected revenues are as follows: Operating costs - Years 1-5 (2024-2028) All figures are in millions of SEK. Further costs are presented in the table below. No inflationary adjustments have been made Year Operational costs Maintenance costs Tech update costs Y1 6 Year Revenue (merchant fees) 4 3 Y2 6 Y1 8 4 3 Important points to note (after year 1): • Operational costs are estimated to increase by 3.5% per year • Maintenance costs are estimated to increase by 2.8% per year • Tech update costs are estimated to increase by 2% per year Revenue - revenue projections have been estimated as are follows: Y2 20 Y3 6 4 3 The discount rate used by BioMet is 4.5% per annum. Task Y3 22 in Y4 6 4 3 Y4 25 the Y5 6 4 3 Y5 30 table. 1. Prepare a cashflow forecast and use investment appraisal techniques to calculate Net Present Value (NPV), Return on Capital (ROC) and Payback Period (PB) for…How much is the Gross Profit/Loss Realized in 2018? Triple Take Construction Co. began construction of a project in 2017 for a contract price of P9,600,000. The project is to be completed in 4 years or in the year 2021. The following are the details regarding the construction project: 2017 2018 2019 Costs incurred to date 2160,000 4,500,000 7,520,000 Estimated cost to complete Progress Billings to date Cash Collections for the year 6,840,000 5,500,000 1,880,000 2304,000 4,320,000 7,680,000 1,728,000 3,240,000 5,760,000
- On February 20, 2022, ABC Construction Company entered into a fixed-price contract to construct a commercial building for P9,000,000. ABC determined that the performance obligation is satisfied over time. Information relating to the contract is as follows: 2022 2023 25% 75% Percentage of campletion Estimated costs at completion P6,750,000 P7,200,000 How much is the contract costs charged to profit ar loss in 2022?Paul Constructions has entered into a contract beginning January 1, 2020, to build a pool. It has been estimated that the pool will cost P300,000, and will take three years to construct. The pool will be billed to the purchasing at P450,000. The following data pertain to the construction period. 2020 135,000 165,000 2021 210,000 90,000 2022 0 Cost to date: Estimated cost to complete. Progress billing to date. Cash collected to date 135.000 120.000 275.000 250,000 450,000 450.000 During 2020, Costs incurred include P15,000 standard materials stored at the site to be used in 2022 to complete the project. Using the percentage of completion method, compute the recognize gross profit for 2022: a. 52,500 b. 45,000 c. 97.500 d. 150,000 2. The CIP net of Progress billing is a. 27.500 current liability b. 32,500 current asset c. 167,500 current asset. d. 102,500 current liabilityIn 2024, Cupid Construction Company (CCC) began work on a two-year fixed price contract project. CCC recognizes revenue over time according to percentage of completion for this contract, and provides the following information (dollars in millions): Accounts receivable, 12/31/2024 (from construction progress billings) $ 37.5 Actual construction costs incurred in 2024 $ 135 Cash collected on project during 2024 $ 105 Construction in progress, 12/31/2024 $ 207 Estimated percentage of completion during 2024 60% What were the construction billings by CCC during 2024?
- In 2024, Cupid Construction Company (CCC) began work on a two-year fixed price contract project. CCC recognizes revenue over time according to percentage of completion for this contract, and provides the following information (dollars in millions): Accounts receivable, 12/31/2024 (from construction progress billings) $ 37.5 Actual construction costs incurred in 2024 $ 135 Cash collected on project during 2024 $ 105 Construction in progress, 12/31/2024 $ 207 Estimated percentage of completion during 2024 60% What are CCC's estimated remaining construction costs on the project at the end of 2024?Dhofar water is installing new equipment at a cost of 140000 OMR. Expected cash flows from this project over the next three years will be 95000 OMR , 80000 OMR and 65000 OMR. The company's discount rate for such projects is 10 percent. What is the project's discounted payback period? Select one: a. 1.81 years O b. None of these Oc. 1.44 years Od. 1.63 years O e. 2.82 yearsCurrent Attempt in Progress During 2023, Sunland Corporation started a construction job with a contract price of $3.50 million. Sunland ran into severe technical difficulties during construction but managed to complete the job in 2025. The contract is non-cancellable. Under the terms of the contract, Sunland sends billings as revenues are earned. Billings are non-refundable. The following information is available: (a) 2023 2024 2025 Costs incurred to date $500,000 $1,750,000 $3,400,000 Estimated costs to complete 2,625,000 1,750,000 -0- - Your answer is partially correct. Calculate the amount of gross profit that should be recognized each year under the percentage-of-completion method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Gross profit/(loss) $ 2023 2024 -100,000.00 $ 2025 $ 100000 द
- ABC Construction Company began work on a contract in 2022 and completed the contract in 2023. The total contact price was P8,500,000. Information related to the construction project are as follows: 2022 2023 Costs incurred during the year P1,200,000 P6,250,000 Estimated costs to complete 4,800,000 - Progress billings during the year 1,450,000 7,050,000 Collections during the year 800,000 6,000,000 How much is the gross profit to be recognized in 2023?Suppose that a contract is started on January 1, 2018, with an estimated completion date of December 31, 2019. The final contract price is P1,500,000. In the first year covering January 1 to December 31, 2018: Cost incurred amounted to P600,000. Half the work on the contract was completed. Certificates of work completed have been issued to the value of P750,000. It is estimated with reasonable certainty that further costs to completion in 2019 will be P600,000. Requirements: 1. The contract is certified at what percentage of completion? 2. At Dec 31, 2018, the entity will recognize how much profit? 3. At Dec 31, 2018, the entity will recognize how much contract asset?On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $220 million. The expected completion date is April 1, 2020, just in time for the2020 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are asfollows ($ in millions):2018 2019 2020Costs incurred during the year $ 40 $80 $50Estimated costs to complete as of December 31 120 60 —Required:1. How much revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements relatedto this contract assuming Sanderson recognizes revenue over time according to percentage of completion?