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The exercise does not clarify whether or not Camden Corporation used cash to complete the project on 2015. If cash was used,would that mean that the solution is not correct because the company would report more cash than it actually has on 2016 and 2017?

The question is complete.

Computing Revenues under Long-Term Contracts Camden Corporation agreed to build a warehouse for a client at an agreed contract price of $900,000. Ex- pected (and actual) costs for the warehouse follow: 2016, $202,500; 2017, $337,500; and 2018, $135,000. The company completed the warehouse in 2015. Compute revenues, expenses, and income for each year 2016 through 2018, and for all three years combined, using the cost-to-cost method. Applying the Financial Statement Effects Template. Refer to the information for Camden Corporation in M5-13. a. Use the financial statement effects template to record contract revenues and expenses for each year 2016 through 2018 using the cost-to-cost method. Cost-to-Cost Method Completed Contract Revenue recognized Percent (percentage of Income of total costs incurred (Revenue Costs expected total contract -Cos Revenue recognized Income ts Year incurred costs amount 2016 $202,500 30%" $270,000 $67,500$ 2017 337,500 50%" 450,000 112,500 2018 135.000 20%; 180,000 45,000 900,000 225.000 Total S675,000 $900,000 $225,000 $900,000 $225,000 a$202,500 $675,000 D $337,500 $675,000 $135,000/ $675,000 b $337 Balance Sheet Income Statement Liabil- Contritb ities Expen Noncash Assets Transaction Cash Asset + - Net -enues Income COGS 202,500 Cash 202,500 2016: 202,500 202,500 Retained +202,500 -Cost of $202,500 202,500 Cash 202,500 AR 270,000 Rev 270,000 2016: Recognize $270,000 revenue for AR +270,000 Accounts Receivable +270,000 +270,000 RetainedRevenue 270,000 +270,000 270,000 COGS 337,500 Cash 337.500 COGS 2017: 337500 -337,500 337,500 +337,500 $337,500 Cost-337,500 of Sales 337,500 AR 450,000 Rev 450,000 2017: Recognize $450,000 revenue for AR +450,000 Accounts Receivable +450,000+450,000 RetainedRevenues 450,000 +450,000 450,000 COGS 135,000 Cash 135,000 2018: 135,000 Cash 135,000 Retained +135,000 Cost of 135,000 135,000 $135,000 Sales 135,000 AR 180,000 Rev 180,000 2018: AR Recognize $180,000 revenue for completed +180,000 Accounts Receivable +180,000 +180,000 Retained Revenues 180,000 - +180,000 180,000