Nasee construction Co. is analyzing the probability of a bidding for the construction of. a new building. In the past, Nasee's main competitor, Nana construction Co. has submitted bids 90% of the time. if NANA bids on a project, the probability that NASEE will get the project is 10%. However, if NANA does not bid on a project, NASEE's probability of getting the project increases to 70%. if NASEE gets the project, what is the probability that NANA did not bid.?

Nasee construction Co. is analyzing the probability of a bidding for the construction of. a new building. In the past, Nasee's main competitor, Nana construction Co. has submitted bids 70% of the time. if NANA bids on a project, the probability that NASEE will get the project is 20%. However, if NANA does not bid on a project, NASEE's probability of getting the project increases to 80%. if NASEE gets the project, what is the probability that NANA did not bid.?

Nailed It! Construction (Nailed It! or the “Company”), an SEC registrant, is a construction company that manufactures commercial and residential buildings. On March 1, 20X1, the Company entered into an agreement with a customer, Village Apartments, to construct a residential apartment building for a fixed price of $1.5 million. The Company estimates that it will incur costs of $1 million to complete construction of the apartment building. The apartment building will only transfer to Village Apartments once the construction of the entire building is complete. In addition, Village Apartments has various design requirements that would require Nailed It! to incur significant costs to rework the building prior to selling it to a customer other than Village Apartments. To construct the apartment building, Nailed It! acquires standard materials that it regularly uses in construction contracts for both residential and commercial buildings. These materials are used to manufacture generic component parts for inclusion in Village Apartments’ residential buildings. These standard materials remain interchangeable with other items until they are deployed in a Village Apartments building. The Company has made the following purchases and incurred the following costs throughout the construction progress:

As of June 30, 20X1, in total, Nailed It! has purchased $75,000 of component parts. As of June 30, 20X1, $25,000 of component parts remain in inventory and $50,000 have been integrated into the project. Further, Nailed It! has incurred $12,500 of direct costs to integrate the component parts into the Village Apartments construction project during the three months ended June 30, 20X1. •During the three months ended September 30, 20X1, Nailed It! purchased an additional $500,000 of component parts ($575,000 in total). Of the $575,000 of component parts, $325,000 remain in inventory and $200,000 have been integrated into the project during the three months ended September 30, 20X1. During the three months ended September 30, 20X1, Nailed It! incurred an additional $50,000 of direct costs to integrate the component parts into the Village Apartments construction project. •As of September 30, 20X1, Nailed It! determined that the project was over budget and revised its cost estimate from $1 million to $1.25 million.•As of December 31 20X1, the construction project was completed. During the three months ended December 31, 20X1, Nailed It! purchased an additional $425,000 of generic component parts ($1 million in total). Of the $1 million component parts, $0 remain in inventory and $750,000 were integrated into the project during the three months ended December 31, 20X1. Nailed It! has incurred $187,500 of direct costs to integrate the component parts into the Village Apartments construction project during the three months ended December 31, 20X1.

If Village Apartments cancels the contract, Nailed It! will be entitled to reimbursement for costs incurred for work completed to date plus a margin of 20 percent, which is considered to be a reasonable margin. Nailed It! will not be reimbursed for any materials that have been purchased for use in the contract but have not yet been used and are still controlled by Nailed It!.

Required:

1.Does the performance obligation meet any of the criteria or recognition of revenue over time?

2.How should the entity recognize revenue for the satisfaction of its performance obligation? What amount of revenue should be recognized for the following periods:

2a.The three months ended June 30, 20X1?

2b.The three months ended September 30, 20X1?

2c.The three months ended December 31, 20X1?

1. If company Nailed It! changes its initial cost estimate from 1,000,000 to 1,250,000 on September 30, 20x1 how does that impact revenue. I have been trying to understand how to use the input method on recording the revenue to the Nailed it! case. Can anyone help me understand it better? I understand 2a, and 2b. I do not understand 2c. I do not understand how the costs are different and how it became a loss of -62,500 at the end of December 31,20x1

2. I would like to know also how to understand the journal entries that i would need to apply at the end of the yearr.

I have already submitted the case for review two times, and both times no one has been able to give me the solid answer to this.

Project Management Analytics Exercise

This is an example of a construction project. The construction for a large corporate building must be started by February 19^th and completed by the end of the year. The legal contract for the project includes a penalty of $10,000 for every week of delay beyond December 31^st. This implies 315 days or 45 weeks for the expected project duration assuming a seven-day work schedule and no holidays in between!

The details of the project activities are as follows –

The project begins with clearing the site, an activity that takes eight weeks. Once the site is cleared, laying of the subsurface drainage takes another eight weeks, followed by filling of the earth which takes 14 weeks. Only after this activity is completed can installation of the artificial turf outside of the building can start – the task then takes 12 weeks. Simultaneously, the work on the building can also start once the site is cleared.

The work on the building starts first by excavating and then by pouring of the concrete basement. Each of these activities takes 4 weeks to complete. Next comes the construction of the walls (12 weeks), followed by constructing the roof (13 weeks). The interiors are then completed (5 weeks) followed by internal painting (4 weeks). However, painting cannot be started until electrical work is completed (4 weeks). The electrical work cannot be started until the outside power lines are laid (8 weeks), which needs an additional activity of getting the permits before it can be started. The permit takes 4 weeks. Assume that you would start on the permits after the excavation activity for the building begins.

Once the roof of the building is erected, work can start simultaneously on the outside lighting (5 weeks), and on the signage and other external landscaping (4 weeks). For simplicity, assume you start the project on February 19^th and you follow a 7-day work schedule where each week of an activity’s duration takes 7 days.

Analyze the following questions based on the estimates of the above activities -

1) When do you complete the project?

Project Management Analytics Exercise

This is an example of a construction project. The construction for a large corporate building must be started by February 19^th and completed by the end of the year. The legal contract for the project includes a penalty of $10,000 for every week of delay beyond December 31^st. This implies 315 days or 45 weeks for the expected project duration assuming a seven-day work schedule and no holidays in between!

The details of the project activities are as follows –

The project begins with clearing the site, an activity that takes eight weeks. Once the site is cleared, laying of the subsurface drainage takes another eight weeks, followed by filling of the earth which takes 14 weeks. Only after this activity is completed can installation of the artificial turf outside of the building can start – the task then takes 12 weeks. Simultaneously, the work on the building can also start once the site is cleared.

The work on the building starts first by excavating and then by pouring of the concrete basement. Each of these activities takes 4 weeks to complete. Next comes the construction of the walls (12 weeks), followed by constructing the roof (13 weeks). The interiors are then completed (5 weeks) followed by internal painting (4 weeks). However, painting cannot be started until electrical work is completed (4 weeks). The electrical work cannot be started until the outside power lines are laid (8 weeks), which needs an additional activity of getting the permits before it can be started. The permit takes 4 weeks. Assume that you would start on the permits after the excavation activity for the building begins.

Once the roof of the building is erected, work can start simultaneously on the outside lighting (5 weeks), and on the signage and other external landscaping (4 weeks). For simplicity, assume you start the project on February 19^th and you follow a 7-day work schedule where each week of an activity’s duration takes 7 days.

Analyze the following questions based on the estimates of the above activities -

3) You have a few proposals to expedite the completion of the project. Analyze each proposal independently of the other proposals and comment on which proposal (if any) would you adopt for expediting the project?

a) Expedite the wall construction activity – this would cost $20000 and would reduce the activity by six weeks

b) The same as the above proposal but in addition, use a double shift on filling the earth. This would cost $10,000 and would reduce the filling activity by 5 weeks.

c) Construction of the roof is important. You could use additional labor for $9000 and cut six weeks off the original duration of the activity.

A random sample of fifty si ​200-meter swims has a mean time of 3.06 minutes and the population standard deviation is 0.08 minutes. Construct a 95​% confidence interval for the population mean time. Interpret the results.In a random sample of 50 ​refrigerators, the mean repair cost was $136.00 and the population standard deviation is​$19.1019.10. A 90​% confidence interval for the population mean repair cost is (131.56,140.44). Change the sample size to n=100. Construct a 90% confidence interval for the population mean repair cost. Which confidence interval is​ wider? Explain.

Construct a 90% confidence interval for the population mean repair cost.

The 95​% confidence interval isA random sample of thirty-seven ​200-meter swims has a mean time of 3.591 minutes. The population standard deviation is 0.080 minutes. A 90​% confidence interval for the population mean time is (3.569,3.613). Construct a 90​% confidence interval for the population mean time using a population standard deviation of 0.03 minutes. Which confidence interval is​ wider? Explain.

The 90​% confidence interval is

The 95​% confidence interval is

You are given the sample mean and the population standard deviation. Use this information to construct the​ 90% and​ 95% confidence intervals for the population mean. Interpret the results and compare the widths of the confidence intervals. If​ convenient, use technology to construct the confidence intervals.

A random sample of 35 home theater systems has a mean price of ​$128.00. Assume the population standard deviation is ​$15.90. Find the 90% and 95% of confidence interval.

Early in its fiscal year ending December 31, 2018, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on March 28 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased for $1,100,000. San Antonio paid $350,000 and signed a noninterest-bearing note requiring the company to pay the remaining $750,000 on March 28, 2020. An interest rate of 8% properly reflects the time value of money for this type of loan agreement. Title search, insurance, and other closing costs totaling $35,000 were paid at closing.

During April, the old building was demolished at a cost of $85,000, and an additional $65,000 was paid to clear and grade the land. Construction of a new building began on May 1 and was completed on October 29. Construction expenditures were as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

May 1 $ 3,450,000 July 30 2,250,000

September 1 1,800,000

October 1 2,700,000

San Antonio borrowed $5,700,000 at 8% on May 1 to help finance construction. This loan, plus interest, will be paid in 2019. The company also had the following debt outstanding throughout 2018:

$3,500,000, 9% long-term note payable

$5,500,000, 6% long-term bonds payable

In November, the company purchased 10 identical pieces of equipment and office furniture and fixtures for a lump-sum price of $750,000. The fair values of the equipment and the furniture and fixtures were $595,000 and $255,000, respectively. In December, San Antonio paid a contractor $360,000 for the construction of parking lots and for landscaping.

Required: Determine the initial values of the various assets that San Antonio acquired or constructed during 2018. The company uses the specific interest method to determine the amount of interest capitalized on the building construction.  How much interest expense will San Antonio report in its 2018 income statement?

Early in its fiscal year ending December 31, 2018, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on March 28 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased for $1,200,000. San Antonio paid $400,000 and signed a noninterest-bearing note requiring the company to pay the remaining $800,000 on March 28, 2020. An interest rate of 9% properly reflects the time value of money for this type of loan agreement. Title search, insurance, and other closing costs totaling $40,000 were paid at closing.
   
During April, the old building was demolished at a cost of $90,000, and an additional $70,000 was paid to clear and grade the land. Construction of a new building began on May 1 and was completed on October 29. Construction expenditures were as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

San Antonio borrowed $6,700,000 at 9% on May 1 to help finance construction. This loan, plus interest, will be paid in 2019. The company also had the following debt outstanding throughout 2018:

In November, the company purchased 10 identical pieces of equipment and office furniture and fixtures for a lump-sum price of $800,000. The fair values of the equipment and the furniture and fixtures were $675,000 and $225,000, respectively. In December, San Antonio paid a contractor $385,000 for the construction of parking lots and for landscaping.
  
Required:
1. Determine the initial values of the various assets that San Antonio acquired or constructed during 2018. The company uses the specific interest method to determine the amount of interest capitalized on the building construction.
2. How much interest expense will San Antonio report in its 2018 income statement?

arly in its fiscal year ending December 31, 2018, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on March 28 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased for $1,200,000. San Antonio paid $400,000 and signed a noninterest-bearing note requiring the company to pay the remaining $800,000 on March 28, 2020. An interest rate of 9% properly reflects the time value of money for this type of loan agreement. Title search, insurance, and other closing costs totaling $40,000 were paid at closing.
   
During April, the old building was demolished at a cost of $90,000, and an additional $70,000 was paid to clear and grade the land. Construction of a new building began on May 1 and was completed on October 29. Construction expenditures were as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

San Antonio borrowed $6,700,000 at 9% on May 1 to help finance construction. This loan, plus interest, will be paid in 2019. The company also had the following debt outstanding throughout 2018:

In November, the company purchased 10 identical pieces of equipment and office furniture and fixtures for a lump-sum price of $800,000. The fair values of the equipment and the furniture and fixtures were $675,000 and $225,000, respectively. In December, San Antonio paid a contractor $385,000 for the construction of parking lots and for landscaping.
  
Required:
1. Determine the initial values of the various assets that San Antonio acquired or constructed during 2018. The company uses the specific interest method to determine the amount of interest capitalized on the building construction.
2. How much interest expense will San Antonio report in its 2018 income statement?
  

Early in its fiscal year ending December 31, 2018, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on March 28 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased for $820,000. San Antonio paid $210,000 and signed a noninterest-bearing note requiring the company to pay the remaining $610,000 on March 28, 2020. An interest rate of 6% properly reflects the time value of money for this type of loan agreement. Title search, insurance, and other closing costs totaling $21,000 were paid at closing.
   
During April, the old building was demolished at a cost of $71,000, and an additional $51,000 was paid to clear and grade the land. Construction of a new building began on May 1 and was completed on October 29. Construction expenditures were as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

San Antonio borrowed $3,000,000 at 6% on May 1 to help finance construction. This loan, plus interest, will be paid in 2019. The company also had the following debt outstanding throughout 2018:

In November, the company purchased 10 identical pieces of equipment and office furniture and fixtures for a lump-sum price of $610,000. The fair values of the equipment and the furniture and fixtures were $426,000 and $284,000, respectively. In December, San Antonio paid a contractor $290,000 for the construction of parking lots and for landscaping.
  
Required:
1. Determine the initial values of the various assets that San Antonio acquired or constructed during 2018. The company uses the specific interest method to determine the amount of interest capitalized on the building construction.
2. How much interest expense will San Antonio report in its 2018 income statement?