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why the gross profit of 2014 is -766667 On February 1, 2013, Arrow Construction...

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why the gross profit of 2014 is -766667

On February 1, 2013, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,000,000. During 2013, costs of $2,000,000 were incurred with estimated costs of $4,000,000 yet to be incurred. Billings of $2,500,000 were sent and cash collected was $2,250,000 In 2014, costs incurred were $2,500,000 with remaining costs estimated to be $3,600,000. 2014 billings were $2,750,000 and $2,475,000 cash was collected. The project was completed in 2015 after additional costs of $3,800,000 were incurred. The company's fiscal year-end is December 31. Arrow uses the percentage-of-completion method Required 1. Calculate the amount of gross profit or loss to be recognized in each of the three years. (Do not round intermediate calculations and round your final answers to the nearest dollar amount. Loss amounts should be indicated with a minus sign. Gross Profit (Loss) 2013 2014 2015 $666,667O $-766,667 $ 200,000

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