Construction Project Cash Flow Activity 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. What is the maximum amount of cash invested by the company during the completion of the project? Month Materials($) Labor($) Subcontractors($ Bill to Owner ($) 8,800 14,200 21,000 6,800 5,100 4,100 60,000 8,100 11,900 19,800 7,600 7,000 4,100 58,500 13,100 31,400 31,700 28,100 17,900 9,300 131,500 33,000 63,200 79,800 46,800 33,000 19,200 275,000 6 Total Arial 10 0 a Wrap Text A 6 - A - illu Paste | B I U E Merge & Center Clipboard Font Alignment - X . fx D E 1 Retention 2 Month Retention is Released 4 Month 5 Bill to Owner 7 Materials 8 Labor 9 Subcontractor 10 Total Costs 12 P&O 13 14 Receipts 15 16 Payments 17 Materials 18 Labor 19 Subcontractor 20 Total Payments 22 Cash Flow Before Payment 24 Total Cash Before Payment 26 Cash Flow at Month's End 28 Total Cash at Month's End 32