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irina1246 [14]
2 years ago
10

You created a financial model for a pitchbook being presented tomorrow to a potential new client. While reviewing the final vers

ion of the presentation, you realize the results are incorrect. Write an email to your supervisor explaining the situation and your recommended solution. Please start with the subject line of the email.
Business
1 answer:
sashaice [31]2 years ago
6 0

Explanation:

A pitchbook is confidential document. It is basically a sales document, used by the sales force, which contains main features or attributes of the firm, the potential of the firm and the future aspects of the firm in detail.

So keeping the given question in mind, I would write to my supervisor as follows:

Subject: Assistance Required

Body:

Dear Sir,

By reviewing the whole document finally, which is to be presented to the client tomorrow, I found some mistakes in the results. I came to know that the results are incorrect and are surely needed to be corrected before the presentation.

I recommend you to delay the meeting for 3 hours by the scheduled time, as i need to check and correct the whole figures again and this would take time.

I am looking forwards for your advice.

Best Regards

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On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of
just olya [345]

Answer:

% of completion= 33.7% for 2021

% of completion = 55.4% for 2022

% of completion = 100% for 2023

Gross profit/loss  =   $696,770 for 2021

Gross profit/loss =  -$141,660  for 2022

Gross profit/loss = -$400,000  for 2023

Explanation: 

See the table below

Year          Actual cost       Total incurred cost       Total estimated cost

2021        $2,070,000        $2,070,000                  $6,140,000

2022       $2,620,000        $4,690,000                  $8,470,000

2023       $3,920,000        $8,610,000                    $8,610,000

Percentage of completion is calculated using the formula;

% of completion =  Total incurred cost /Total estimated cost *100

For 2021:

% of completion = $2,070,000 /$6,140,000 *100

                           =0.337 *100

                            =33.7%

For 2022:

% of completion = $4,690,000 /$8,470,000 *100

                           =0.554 *100

                           = 55.4%

For 2023:

% of completion = $8,610,000 / $8,610,000 *100

                            =1 * 100

                             = 100%

             

Revenue and Gross profit or loss recognized in 2021, 2022 and 2023

For 2021:                                           Previous year       Recognized in 2021

Price                    $8,210,000  

%completion         33.7%  

Revenue                $2,766,770                    0                     $2,766,770

Expenses                $2,070,000                  0                     $2,070,000

Gross profit/loss     $696,770                                              $696,770

For 2022:                                       Previous year       Recognized in 2022

Price                    $8,210,000  

%completion        55.4%

Revenue              $4,548,340              $2,766,770              $1,781,570        

Expenses             $4,690,000             $2,070,000            $2,620,000            

Gross profit/loss   -$141,660                                             -$838,430

For 2023:                                         Previous year       Recognized in 2023

Price                     $8,210,000  

%completion          100%

Revenue                $8,210,000           $4,548,340        $3661660        

Expenses               $8,610,000           $4,690,000       $3920000

Gross profit/loss = -$400,000                                     -$258340

2. Journal Entries for 2021:

Year General Journal                        Debit                 Credit

2021 Construction in progress      $2,070,000

                Various accounts                                                 $ 2,070,000

          (Construction cost incurred)

          Accounts receivable               $2,570,000

               Billings on construction                                        $2,570,000

                 

               Cash                                   $2,320,000

               Accounts receivable                                 $2,320,000

              Construction in progress           $696,770  

              Cost of construction             $2,070,000

        Revenue from long-term contracts                       $2,766,770

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