Ivanhoe Enterprises Ltd. has entered into a contract beginning in February 2023 to build two warehouses for Metlock Structures Ltd. The contract is a non-cancellable fixed-price contract for $9.6 million. The following data pertain to the construction period (all figures in thousands). 2023 Costs for the year $3,375 Estimated costs to complete 4.125 Progress billings for the year (non-refundable) 3,050 3,550 3,000 Cash collected for the year 2.685 3,600 3,315 2024 4,125 2025 1.800 1,875 0.
Ivanhoe Enterprises Ltd. has entered into a contract beginning in February 2023 to build two warehouses for Metlock Structures Ltd. The contract is a non-cancellable fixed-price contract for $9.6 million. The following data pertain to the construction period (all figures in thousands). 2023 Costs for the year $3,375 Estimated costs to complete 4.125 Progress billings for the year (non-refundable) 3,050 3,550 3,000 Cash collected for the year 2.685 3,600 3,315 2024 4,125 2025 1.800 1,875 0.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:(b)
Calculate the amount of the gross profit to be recognized each year of the contract. (Enter negative amounts using either a negative
sign preceding the number eg.-45 or parentheses eg. (45).)
Gross profit/(loss)
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2023
7
2024
2025
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(c1)
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Transcribed Image Text:Ivanhoe Enterprises Ltd. has entered into a contract beginning in February 2023 to build two warehouses for Metlock Structures Ltd.
The contract is a non-cancellable fixed-price contract for $9.6 million. The following data pertain to the construction period (all figures
in thousands).
Costs for the year
Estimated costs to complete
Progress billings for the year (non-refundable)
Cash collected for the year
(a)
2023
$3,375
4,125
3,050
2024
2025
4,125
1,875
3,550 3,000
2,685 3,600
1.800
-0.
3,315
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