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A construction company is negotiating a construction project with a six-month duration. On the last day of each month the construction company may bill the

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A construction company is negotiating a construction project with a six-month duration. On the last day of each month the construction company may bill the owner for the work completed during the month. The owner pays the monthly bills one month after they are received. The owner also holds 10% retention. Final Payment is expected one month after completion of the project and includes payment of the retention. The construction company pays material suppliers in full when it receives payment from the owner. The construction company pays subcontractors when it receives payment from the owner but withholds 10% retention from the subcontractor's payment. The construction company pays for labor weekly. The projected monthly material, labor, and subcontractor costs, as well as the amount the construction company will bill the project's owner each month, are shown in the Table below. Determine the monthly cash flows and the total cash generated by the project at the end of each month and just before each payment is received from the project's owner. Fill in the blanks on the cash flow spreadsheet below and determine what is the maximum amount of cash invested by the company during the completion of the project? GIVEN: Bill to Month Materials($) Labor($) Subcontractors($) Owner ($) 1 33.700 25,300 35,600 101,200 2 54,100 42,400 125,200 237,200 3 69,600 77.900 93,600 258,000 4 17,200 17,900 105.700 150,700 5 14.700 21.900 60,400 103,800 e 6 11,600 12.700 35,600 64,100 Total 200,600 198,100 456,100 915,000 3 6 7 Month 1 Bill to Owner 101,200 2 237,200 4 150,700 15 103.800 258.000 64,100 Materials 33,700 Labor 25,300 Subcontractor 35,600 Total Costs 94,600 54,100 42400 125,200 221.700 69,600 77.900 93,600 241.100 17,200 17.900 105,700 140,800 14.700 21.900 60,400 97.000 11.600 12,700 35,600 59.900 PGO Receipts Payments Materials 11.600 33.700 54,100 17.200 14,700 69.600 Labor 77.900 17.900 21.400 12700 95.130 84.240 54 360 77.650 Subcontractor 171.740 134 230 89 250 81.760 Total Payments 110.9501 16,3501 38.9501 121.2001 1 Gaun Flow Before Payment Total Cash Betono 24 (10,0501 1403 146.500 0813100 1400 11.660 59.90 131 2001 117060 Castilowat Month's End 25.300 111.00 300 0423600 73.56 Toca Most 31 A 14 AM TOR! R

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