The painting company sells equiptment. All sales are 3 year contract. This uses the INSTALLMENT METHOD of accointing for realized gross profit. It expects to collect 28% of its sales during the year of sale, 60% during the following year and 10% during the last year of the contract.

determine :

Gross profit %

Cash collected for each year

Realized gross profit for each year

Sales Cost of good.sold gross profit %

2017. 900,000 513,000

2018. 1,200,000 672,000

2019. 1,600,000 928,000

Answer rating: 100% (QA)

sAns To solve this problem well first calculate the gross profit percentage Then well determine the cash collected for each year and the realized gros... View the full answer