Required :

Assume that the percentage of completion method was available to AQL at the start of the project in 2014. Assume the company compares its current method with the percentage of completion method. Based on the results at the end of 2016 and 2021, which of the two methods provides:

- Lowest expenses.

- Highest net income

- Highest total assets (please focus only on Construction in progress, Billings on construction contracts and Accounts receivable).

Florida Construction Company (FCC) and Anfaak Qatar Limited (AQL) had the following information: Costs incurred during each year 78,125 Estimated costs to complete 650,000 Progress billing during the year 421,875 Cash collected during the year 359,375 2014 2015 75,000 587,500 195,313 234,375 2016 120,313 531,250 265,625 265,625 2017 48,438 397,500 177,344 171,875 2018 62,500 261,250 189,844 218,750 2019 498,828 153,750 234,668 207,031 2020 55,078 97,500 121,387 144,531 2021 77,734 56,250 156,543 160,156 2022 37,109 0 112,402 113,281