In 2021, Cupid Construction Co. (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, 12/31/2021 (from construction progress billings)$37.5 Actual construction costs incurred in 2021$135 Cash collected on project during 2021$105 Construction in progress, 12/31/2021$207 Estimated percentage of completion during 2021 60% How much cash remains to be collected by CCC on the project?

The cash that remains to be collected is calculated by deducting the cash received from the contract…

Answered: In 2021, Cupid Construction Co. (CCC)…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In 2021, Cupid Construction Co. (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, 12/31/2021 (from construction progress billings)	$	37.5
Actual construction costs incurred in 2021	$	135
Cash collected on project during 2021	$	105
Construction in progress, 12/31/2021	$	207
Estimated percentage of completion during 2021		60	%

How much cash remains to be collected by CCC on the project?

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