1. LIZAEDI CO was the low bidder on an express-way contract along a major highway. The contract bid was P200,000,000. The Co estimates that it will take 36 months from 20x7 to complete the project. The contract provided for the following: 5% mobilization fee payable within 10 days from the signing of the contract. As a protection for the national government, 10% of the progress billings will be retained and is paid upon final acceptance of the construction. Progress billings will be paid within 7 days from acceptance date. LIZAEDI estimates a P50,000,000 gross profit from the project and appropriately uses the percentage of completion method of accounting. By the end of 20x7, LIZAEDI billed the national government corresponding to 50% completion on the project. What is the total amount of cash collected by LIZAEDI from this project in 20x7?

2.On January 2, 20x6, Lord Co signed an agreement to operate as a franchisee of Ring Co, for an initial franchise fee of 937,500 for 7 years. Of this amount, 175,000 was paid when the agreement was signed and the balance payable in four annual payments beginning December 31, 20x6. Lord signed a non-interest bearing note for the balance. Lords rating indicates that he can borrow money at 16% for the loan of this type. Assume that substantial services amounting to 283,500 had already been rendered by Ring and that additional indirect franchise cost of 25,500 was also incurred. PV factor is 2.80.If the collection of the note is not reasonable assured, what is the net income for the year ended December 31, 20x6?

3.On January 2, 20x6, Lord Co signed an agreement to operate as a franchisee of Ring Co, for an initial franchise fee of 937,500 for 7 years. Of this amount, 175,000 was paid when the agreement was signed and the balance payable in four annual payments beginning December 31, 20x6. Lord signed a non-interest bearing note for the balance. Lords rating indicates that he can borrow money at 16% for the loan of this type. Assume that substantial services amounting to 283,500 had already been rendered by Ring and that additional indirect franchise cost of 25,500 was also incurred. PV factor is 2.80.If the collection of the note is not reasonable assured, what is the net income for the year ended December 31, 20x6?