Financial statement analysis FRA

A firm has undertaken a contract with an estimated total cost of $500 million at a price of $800 million. At the end of the first reporting period, the firm has devoted resources of $180 million to the project. The customer has been billed for $250 million and made payments of $160 million. The amount of revenue the firm should record for the period is closest to:

$180 million.

$250 million.

$290 million.

Answer is C
Can someone explain in detail how?

Revenue = (costs for year/ total costs) x total revenue
(this changes in future years as we do accumulated value - what has been pad already)

Revenue = (180/500) x 800 = 288

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