A project has the following estimated revenues of $1 0.0 million and estimated costs are $7.5 million. The table below provides information on amounts billed, cash received, and cost incurred for each year ofthe 3-year project (data is in millions of dollars). Year 1 Year 2 Year 3 Amounts billed 4 3.5 2.5 Cash received 2 5 3 Cost incurred 3 3 1.5 Using the accounting method that smooths income, ho much profit is recognized in year 3? WHen the “smoothing income” is mentioned, I guess we have to use Percentage-completion method? Or is it something else? Thanks again!
anyone ? same problem on this question
you use percentage of completion