Aconstruction company entered into a fixed-price contract to build an office building for $16 million. construction costs incurred during the first year were $3 million and estimated costs to complete at the end of the year were $7 million. during the first year the company billed its customer $3 million, of which $1 million was collected before year-end. what would appear in the year-end balance sheet related to this contract using the percentage-of-completion method

On the balance sheet it will appear:

account receivable                2,000,000

unbilled contract revenue     1,800,000

Explanation:

Using percentage of completion method:

3,000,000 cost incurred  + 7,000,000 cost to complete= 10,000,000 total cost

3,000,000/10,000,000 = 30%

16,000,000 revenue x 30% = 4,800,000 millions

cash                                            1,000,000

account receivable                  2,000,000

unbilled contract receivable   1,800,000

         contract revenue earned                   4,800,000

answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;