Homework Soursea Determine the gross profit percentage using cash accrual
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 | ?? | ?? |
Solution
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% |
