In 2018, Cupid Construction Co. (CCC) began work on a two-year fixed price contract project. CCC recognizes revenue over time according to percentage of completion for this contract, and provides the following information (dollars in millions):
- What were the construction billings by CCC during 2018?
A) $142.5 million.
B) $67.5 million.
C) $37.5 million.
D) Cannot be determined from the given information.

Question

In 2018, Cupid Construction Co. (CCC) began work on a two-year fixed price contract project. CCC recognizes revenue over time according to percentage of completion for this contract, and provides the following information (dollars in millions): 
- What were the construction billings by CCC during 2018?
A) $142.5 million. 
B) $67.5 million. 
C) $37.5 million. 
D) Cannot be determined from the given information.

Quizplus · Accepted Answer

Billings - Cash collections = Accounts receivable, so Billings = Accounts receivable at year-end of $37.5 million + Cash collections of $105 million = $142.5 million.