5. The following information pertains to Florida Construction Company and Qatar Tunnel Company:

	Costs incurred during the year	Estimated costs up to the end of the year	Invoices during the year	Cash receipts during the year
2014	62,500	520,000	337,500	287,500
2015	60,000	470,000	156,250	187,500
2016	96,250	425,000	212,500	212,500
2017	38,750	318,000	141,875	137,500
2018	50,000	209,000	151,875	175,000
2019	399,063	123,000	187,734	165,625
2020	44,063	78,000	97,109	115,625
2021	62,188	45,000	125,234	128,125
2022	29,688	0	89,922	90,625

3. Answer the following questions about the Florida Construction Company and the Qatar Tunnel Company:

a. Does Mr. East agree that at the end of 2016, his company made a higher profit from the project than the Florida Construction Company had earned from the project? Evidence must be provided to support your position. B. Does Mr. West agree that his company has increased its total assets from the project at the end of 2016 compared to the method used by Qatar Tunnel Company (please focus only on construction work in progress, invoices on construction contract and receivables)? Evidence must be provided to support your position.

C. Assume that the percentage of completion method was available to Qatar Tunnel Company at the beginning of the project in 2014. Suppose also that the company compares its current method with the percentage method. Based on the results at the end of 2016 and 2021, which of the two methods provides the following:  Lowest expenses.  Highest net income.  Highest Total Assets (please focus only on construction work in progress, invoices on construction contract and receivables).