Bigelow Contractors signed a contract to construct a storage facility for RGN manufacturing, Inc. The fixed-fee contract specifies that the facility is to be completed in three years. Bigelow uses the percentage-of-completion method (cost-to-cost approach) to account for its construction transactions. Information related to this contract is summarized in the following table.

Contract price	$ 2,000,000
	2018	2019	2020
Actual construction costs incurred during the year	$ 900,000	$ 300,000	$ 600,000
Construction costs incurred in prior years	0	900,000	1,200,000
Cumulative construction costs incurred to date	900,000	1,200,000	1,800,000
Estimated costs to complete	600,000	400,000	0
Estimated total costs	1,500,000	1,600,000	1,800,000
Progress billings made during the year	700,000	700,000	600,000
Cash collections during the year	400,000	800,000	800,000

Assume that Bigelow's total assets were $5,000,000 and its liabilities were $2,000,000 at the beginning of the year.

a. Compute net income under the percentage-of-completion and completed-contract methods for each year (Ignore income taxes).

b. Compute the total assets, liabilities, and equity under the percentage-of-completion and completed contract methods at the end of each year.

c. Compute the profit margins under the percentage-of-completion and completed-contract methods each year. Comment on the differences.

d. compute the debt-to-equity rations under the percentage-of-completion and completed-contract methods each year. Comment on the difference.

Demonstrate your calculation and answers in excel file, detail the calculation procedure.