Using the following data for the Michael Ryan Construction Company, calculate the annual income of the company using (1) the percentage-of-completion method and (2) the completed-contract method.
| Project " A" |
Project " B" |
Project " C" |
| Total Contract Amount |
|
$820,000.00 |
|
$1,400,000.00 |
|
$1,000,000.00 |
|
| Cash Expenditure to 12/31/X3 |
|
$730,000.00 |
|
$750,000.00 |
|
$600,000.00 |
|
| Total Expenditure to 12/31/X4 |
|
$760,000.00 |
|
$800,000.00 |
|
$600,000.00 |
|
| Estimated of Expenditure to Complete |
|
$0.00 |
|
$775,000.00 |
|
$300,000.00 |
|
| Total Estimated Expenditures |
|
$760,000.00 |
|
$1,575,000.00 |
|
$900,000.00 |
|
| Billings through 12/31/X3 |
|
$800,000.00 |
|
$900,000.00 |
|
$750,000.00 |
|
| Cash Collection Through 12/31/X3 |
|
$780,000.00 |
|
$850,000.00 |
|
$700,000.00 |
|
|
Total G&A Expenses |
|
$150,000.00 |
|
|
|
|
|