Accounting Homework?

Question

Percentage of completion in accounting?

Ok, I have calculated the percentage of completion and revenue. How would I get expense and net income from this information.

For example:

2005 cash collections 30 million cost incurred 15 million contract price is 120 million.

I calculated the following as:

2005 15 million/85 million = 18% of completion 18% X 120 million = 21.6 million in revenue

21.6 million – 15million 6.6 million gross profit

What do they mean by calculate expense and net income?

Thanks

Answer 1

I probably know about as much about this problem as you.  But it certainly seems to me that the expense is 15 mil. After all that is what has been spent.  To calculate net income, you have to know overhead, interest expense, and taxes which has not been stated.

Answer 2

you can find it

http://jameshalftaipeipeople.spaces.live...