Revenues Finance Assingment Help With Solution

Posted on May 6, 2017

Revenues Finance Assingment Help With Solution

 
Determine the revenues, construction costs, cash receipts, and cash disbursements for a construction company that currently has three projects under contract for the next year and anticipates picking up a fourth project during the year. For the first project, the project’s owner is holding $50,000 in retention from this year’s payments and will continue to hold 10% retention on all payments during the next year. The construction company is holding $26,000 retention on its subcontractors from the previous year’s payments. The retention for this project is expected to be released in June. The estimated bill to the project’s owner and construction costs for the first project are shown in Table 14-1.
 

 

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How would the company’s cash needs change for the company in Examples 14-1 to 14-5 if they subcontracted out $25,000 of labor per month for $26,000 per month on the first project for the months of January through April?
 

How would the company’s cash needs change for the company in Examples 14-1 to 14-5 if the third project started in May instead of February and the retention was not released until the following year?

 

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