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Product Description
8%
Warranty Returns as % of Sales 2%
Barry's Construction Division
The Barry Construction Division was working on one
project and used the percentage of completion revenue
recognition method for 2012 fiscal year.
Contract for new retail mall building
Total Contract Amount $120,000,000
Contract Grant Date August 14, 2012
Construction Began September 1, 2012
Estimated Cost to Complete at beginning of contract
$95,000,000
Estimated Time to Complete Project 2 years
As of December 31, 2012
Construction costs incurred to date $26,000,000
Billings to date $25,000,000
Expected costs to complete $78,000,000
Bead's Magazine Distribution Division
Our magazine distribution division sells to national
quickmart stores. Our division allows for up to 30% of
sales in returns. For the past 4 years, returns have
averaged 25%. We record revenue based on revenue
recognition when the right of return exists.
Total Sales for 2012 $10,000,000
Cash
2013
2012
$
364,000
$
322,000
Receivables
$
218,400
$
168,000
Inventory
$
252,000
$
308,000
Plant assets
$
224,000
$
189,000
Accumulated depreciation
$
(112,000)
$
(106,400)
$
112,000
$
130,200
$
1,058,40
0
$
1,010,80
0
Accounts payable
$
189,000
$
170,800
Accrued liabilities
$ 42,000
$ 46,340
Bonds payable
$
189,000
$
232,400
Common stock
$
252,000
$
231,000
Retained earnings
$
386,400
$
330,260
$
1,058,40
0
$
1,010,80
0
INCOME STATEMENT
Sales
1,050,00
0
742,000
Gross Margin
308,000
148,400
159,600
9,800
169,400
67,760
Net Income
101,640
Additional information: