28. Cash Flow Statement Preparation, Capital Budgeting, and Revenue Recognition:

STU Corporation is preparing its cash flow statement for the year ended December 31, 2023. Net income for the year was $500,000, depreciation expense was $70,000, accounts receivable increased by $40,000, accounts payable decreased by $25,000, and the company purchased new equipment for $200,000. Prepare the cash flow statement using the indirect method. Additionally, STU Corporation is considering investing $800,000 in a new project that is expected to generate cash flows of $300,000 in the first year, $350,000 in the second year, and $400,000 in the third year. Calculate the net present value (NPV) of the project assuming a discount rate of 8%. Lastly, STU Corporation provides construction services and recognizes revenue based on the percentage of completion method. During the year, STU Corporation started a project with a total contract value of $1,000,000. At the end of the year, the project was 50% complete. Determine the revenue recognized for the project.