Spacey has been hired to build a new space shuttle for NASA…
Spacey has been hired to build a new space shuttle for NASA for $2 Billion that will transport humans to Mars. Spacey expects it will take five years to build the shuttle. They use the percentage of completion method to account for long-term construction projects. Use the following information about the first 4 years of construction to answer the following questions. Year 1 Year 2 Year 3 Year 4 Cash Cost incurred to date $200 million $390 million $1,100 million $1,400 million Estimated future costs $800 million $910 million $1,100 million $700 million Current year Billings $350 million $300 million $500 million $400 million Current year Cash coll $270 million $420 million $490 million $405 million What is the income statement impact (current period profit or loss) for Year 3?