Consider the following information: Accounts receivable, 12/31/2018 (from construction progress billings)$37

Accounting Mar 19, 2021

Consider the following information:

Accounts receivable, 12/31/2018 (from construction progress billings)$37.5Actual construction costs incurred in 2018$135Cash collected on project during 2018$105Construction in progress, 12/31/2018 $207Estimated percentage of completion during 2018 60%

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

a.$240 million

b.Cannot be determined from the given information.

c.$202.5 million

d.$70 million

Expert Solution

Computation of Cash remains to be collected by CCC on the project:

Percentage of Completion of the Project = Construction in Progress / Total Contract Price

60% = $207 / Contract Price

Contract Price = $207 / 60% = $345 millions

Cash remains to be Collected = Contract Price - Cash Received till date

= 345 - 105

= $ 240 Millions

So, cash remains to be collected by CCC on the project is $240 millions.

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote