Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
A construction company is negotiating on a construction project with a three-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 a 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 for the owner but withholds 10% retention from the subcontractor's payment. The construction company pays for labor weekly. Determine monthly cash flow and complete the table. Month Cost Labor 5300 Bill to Owner Sub. 2 101200 Material 33700 54100 60600 157400 35600 125200 42400 237200 77000 3600 258000 Tota 145000 254400 506400 Cash Flow Before Payment Total Cash Before Payment Cash Flow at Month's End Total Cash at Month's End -25.300 25.300 -42.300 42300 QUESTION 13 A construction company is negotiating on a construction project with a three-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 bils one month after they are received. The owner also holds a 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 I receives payment from the owner. The construction company pays subcontractors when it receives for the owner but withholds 10% retention from the subcontractor's payment. The construction company pays for labor weekly. Determine monthly cash flow and complete the table. Month Bill to Owner Sub. Material 33700 101200 54100 Labor 25300 42400 77000 145000 60000 157400 35600 125200 03600 254400 237200 258000 506400 3 Cash Flow Before Payment Total Cash Before Payment Cash Flow at Month's End Total Cash at Month's End -25.300 25.300 -42.300 42300

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

What are the key features of an algorithm?

Answered: 1 week ago

Question

5. What are the main groups without health insurance? LO24.3

Answered: 1 week ago