Q 2: On December 31 2002, Blue Arc builders entered into a long-term construction with the following terms: Total Expected Cost Rs: 380,000 Total contract price Rs: 480,000 Construction is expected to take five years. Construction cost costs and cash flows are shown in the following table: Year Cost Incurred Cash Received 2003 80,000 110,000 2004 0 0 2005 120,000 130,000 2006 140,000 150,000 2007 40,000 90,000 Totals 380,000 480,000 (a). Show the revenue and Pre-tax income (Income Statement) for each year under both the percentage-of-completion and completed contract methods. (b). Prepare the Balance Sheet for each year under both the percentage-of-completion and completed contract methods. (c). The total projected costs increase by Rs.40,000, and the change in estimate is made at December 31, 2006. Compute the revenue and pretax income under the revised assumption