Florida Construction Company (FCC) and Anfaak Qatar Limited (AQL) had the following information:

	Costs incurred during each year	Estimated costs to complete	Progress billing during the year	Cash collected during the year
2014	500,000	4,160,000	2,700,000	2,300,000
2015	480,000	3,760,000	1,250,000	1,500,000
2016	770,000	3,400,000	1,700,000	1,700,000
2017	310,000	2,544,000	1,135,000	1,100,000
2018	400,000	1,672,000	1,215,000	1,400,000
2019	3,192,500	984,000	1,501,875	1,325,000
2020	352,500	624,000	776,875	925,000
2021	497,500	360,000	1,001,875	1,025,000
2022	237,500	0	719,374	725,000

1. Answer the following questions with respect to FCC and AQL companies:

a). Do you agree with Mr. East’s position that at the end of 2016, his company makes a higher profit from the project when compared to the profit that FCC makes from its project? Provide evidence to support your decision

b). Do you agree with Mr. West’s position that at the end of 2016, his company increased its total assets from the project when compared to the method used by AQL (please focus only on Construction in progress, Billings on construction contracts and Accounts receivable)? Provide evidence to support your decision

c). Assume that the percentage of completion method was available to AQL at the start of the project in 2014. Assume the company compares its current method with the percentage of completion method. Based on the results at the end of 2016 and 2021, which of the two methods provides:

• Lowest expenses.
• Highest net income
• Highest total assets (please focus only on Construction in progress, Billings on construction contracts and Accounts receivable)

Answer rating: 100% (QA)

a Based on the information given it appears that Mr East is correct in stating that Anfaak Qatar Lim... View the full answer