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Use the following financial statement related to Smally Builders under the percentage-of-completion and completed-contract methods to answer the questions below. Click the icon to
Use the following financial statement related to Smally Builders under the percentage-of-completion and completed-contract methods to answer the questions below. Click the icon to view the financial statement under the percentage-of-completion method.) (Click the icon to view the financial statement under the completed-contract method.) a. Compute the profit margins under the percentage-of-completion and completed-contract methods each year. Comment on the differences. b. Compute the debt-to-equity ratios under the percentage-of-completion and completed-contract methods each year. Comment on the differences. 19091 a. Compute the profit margins under the percentage-of-completion and completed-contract methods each year. Comment on the differences. (Round your answers to one decimal place, X.X%. Use parentheses or a minus sign for a loss. Enter a "0" for any zero amounts.) Begin by computing the profit margins under the percentage-of-completion method each year. 2022 Profit margins 2023 2024 84% Next, compute the profit margins under the completed-contract method each year. 2022 Profit margins 2023 2024 The profit margin under the method is 0% in 2022 and 2023 as expected. Under the method, profit margin varies with estimated revenues and gross profit. Note also, under
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