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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
Example: F. Underwood
F. Underwood earns revenue primarily through long-term contracts through which inputs are estimable toward reasonable and measurable progress toward completion. The project began in 2015 and is the only project that Underwood has currently on-going. There are no bad debts as Underwood has enforceable rights to collect on the job. Use F. Underwood's balance sheet, income statement, and statement of cash flow disclosures to answer the questions that follow.
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F. Underwood Statement of Consolidated Financial Position
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12/31/16 12/31/15
Contract Asset, net
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Accounts Receivable 2,215,000 1,830830
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F. Underwood Income Statement
 2016 2015
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Revenue Recognized from Long-term Contracts $2,340,500 $1,924,250
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Costs associated with Long-term Contracts $2,010,350 $1,610,100
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F. Underwood Direct Statement of Cash Flows
 2016 2015
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Cash Collections made on Billings for Long-term Contracts $1,100,400 $0
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Determine the amount of the contractual asset would be valued at on the balance sheet at 12/31/16 and 12/31/15 (hint, think of the values/accounts that add to the contract asset and those that reduce it).Â
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