Rock Aerospace Company Signed a Contract on April 1, Year $\begin{array}{ll}\text { Year 4 } & \$ 5,600,000 \\\text { Year } 5 & \$ 11,200,000 \\\text { Year 6 } & \$ 5,600,000\end{array}$

question 64

Multiple Choice

Rock Aerospace Company signed a contract on April 1, Year 4, to build a satellite for $28,000,000.Estimated costs for the contract are:
$\begin{array}{ll}\text { Year 4 } & \$ 5,600,000 \\\text { Year } 5 & \$ 11,200,000 \\\text { Year 6 } & \$ 5,600,000\end{array}$
$\text { Assume that actual costs incurred coincide with expectations. Cash collections of the contract price are as follows: }$
$\begin{array}{ll}\text { Year } 4 & \$ 4,200,000 \\\text { Year } 5 & \$ 7,000,000 \\\text { Year 6 } & \$ 16,800,000\end{array}$ Refer to the Rock Aerospace Company example.Income from the contract for Year 5 under the installment method is:

• A)$1,000,000
• B)$1,400,000
• C)$2,800,000
• D)$3,360,000
• E)None of the above

Analyze the strategic management processes within nonprofit organizations, including mission fulfillment and gap filling.

Identify and explain the financial management practices and limitations of nonprofit organizations.

Understand the components and importance of organizational culture in nonprofits.

Recognize the differences between nonprofit and government organizations in terms of flexibility and responsiveness.

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Definitions:

Raw Material

Basic substances in their natural, modified, or semi-processed states used as inputs to a production process for manufacturing goods.

Beginning Inventory

The value of goods available for sale at the start of an accounting period, carried over from the end of the previous period.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.

Direct Labor Budget

A financial plan that estimates the cost of direct labor required to meet the production needs of a business.