Arizona Desert Homes (ADH) constructed a new subdivision during 2020 and 2021 under contract with Cactus Development Co. Relevant data are summarized below: Contract amount $ 3,000,000
Cost: 2020 1,200,000
2021 600,000
Gross profit: 2020 800,000
2021 400,000
Contract billings: 2020 1,500,000
2021 1,500,000
ADH recognizes revenue over time with respect to these contracts.
What would be the journal entry made in 2020 to record revenue?
Accounts receivable 1,500,000
Revenue from long-term contracts 1,500,000
Accounts receivable 2,300,000
Gross profit 800,000
Revenue from long-term contracts 1,500,000
Construction in progress 800,000
Cost of construction 1,200,000
Revenue from long-term contracts 2,000,000
Accounts receivable 1,500,000
Billings in excess of cost 300,000
Revenue for long-term contracts 1,800,000

Which of the following pairs is most similar to each other?

Calculate the cost of each capital component—in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs), and the cost of equity (ignoring flotation costs). use both the capm method and the dividend growth approach to find the cost of equity.calculate the cost of new stock using the dividend growth approach.what is the cost of new common stock based on the capm? (hint: find the difference between re and rs as determined by the dividend growth approach and then add that difference to the capm value for rs.)assuming that gao will not issue new equity and will continue to use the same target capital structure, what is the company’s wacc? e. suppose gao is evaluating three projects with the following characteristics.each project has a cost of $1 million. they will all be financed using the target mix of long-term debt, preferred stock, and common equity. the cost of the common equity for each project should be based on the beta estimated for the project. all equity will come from reinvested earnings.equity invested in project a would have a beta of 0.5 and an expected return of 9.0%.equity invested in project b would have a beta of 1.0 and an expected return of 10.0%.equity invested in project c would have a beta of 2.0 and an expected return of 11.0%.analyze the company’s situation, and explain why each project should be accepted or rejected g

Barbara flynn is in charge of maintaining hospital supplies at general hospital. during the past year, the mean lead time demand for bandage bx-5 was 65 (and was normally distributed). furthermore, the standard deviation for bx-5 was 6. ms. flynn would like to maintain a 90% service level.refer to the standard normal table for z-values.a) what safety stock level do you recommend for bx-5? safety stock=)what is the appropriate reorder point? reorder point=