a) Determine the gross profit percentage (%) using cash, accrual, and completed
ID: 2607774 • Letter: A
Question
a) Determine the gross profit percentage (%) using cash, accrual, and completed contract methods at the end of the 1st month, If the company billed an invoice to customer $40,000, received cash $30,000 from customer, and paid out ($10,000) to suppliers at the end of 1st month.
Anticipated Fixed Price Contract (3-month job)
$ Amount
Gross Profit %
Anticipated income
$230,000.00
-
Anticipated costs
($170,000.00)
-
Anticipated gross profit
??
??
Anticipated Fixed Price Contract (3-month job)
$ Amount
Gross Profit %
Anticipated income
$230,000.00
-
Anticipated costs
($170,000.00)
-
Anticipated gross profit
??
??
Explanation / Answer
Calculate Gross profit percentage :
Amount Gross profit % Anticipated income $230,000.00 - Anticipated Costs ($170,000.00) - Anticipated Gross profit $60,000.00 26.09%Related Questions
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