问大家一个L1的FINANCIAL REPORTING的问题，急，在线等/。 face, completed, operation, contract, stadium

chris_chan

Contractors,INC,has contracted to build a stadium for the City.The contract price is 100million.costs are estimated to be 60million,and the time to completion is three years.Compared to the completed contract method,what effect will usingthe percentage-of-completion method most likely have on a year 2 leverage ratio and year3 cash flow from operation?

 

which would be lower?

chris_chan

这个项目的收入计入CFO么？

对现金流有什么影响么？对LEVERAGE的影响要从什么角度分析呢？

 

谢谢大家了。

c23549

 completed contract method在项目完成以前不计成本也不计收入，percentage method是在项目过程中按比例记录成本和收入，当然还有利润。第二年的时候leverage ratio是completed高，因为percentage method下equity增加，debt不变，ratio在变小。第三年completed的CFO高，因为第三年完成项目，会计入全部收入和成本，当然还有全部利润，而percentage只是记录一部分。