How much cash is forecasted to be collected on accounts receivable in January 2009?' . 1 . 2007 390,000 3,400,000 300,000 170,000 500,000 40,000 4,800,000 360,000 139,200 220,800 60,000 9,000 51,000 45,000 318,800 3,118,800 2008 160,000 2,000,000 205,200 70,000 250,000 40,000 2,725,200 360,000 211,200 148,800 60,000 12,000 48,000 47,000 243,800 2,969,000 Account Cash Accounts Receivable Retainage Receivable Material Inventory Under-billings Other Current Assets Total Current Assets Equipment (Gross) Less: Acc. Dep. Equipment Net) Building (Gross) Less: Acc. Dep. Building (Net) Land Total Non-Current Assets Total Assets Equities Liabilities Account Payable Subcontracts Payable Retainage Payable Over-billings Note Payable (current) Income Tax Payable Current Portion (L/TD Other Current Liability Total Current Liability Long Term Debt Total Liability Net Worth Capital Stock Retained Earnings Total Net Worth Total Equities 560,000 1,270,000 170,000 600,000 300,000 58,000 200,000 42,000 3,200,000 818,800 4,018,800 475,000 400,000 75,000 700,000 150,000 100,000 14,000 1,900,000 145,000 2,045,000 840,000 260,000 1,100,000 5,118,800 700,000 224,000 924,000 2,969,000 --. 2008 Account $ Earnings 10,000,000 Cost of Construction Labor 1,600,000 Material 4,000,000 Subcontracts 3,200,000 Other Direct Cost (JOH) 200,000 Total Direct Cost 9,000,000 Gross Profit 1,000,000 Operating Expense Variable Operating Expense Auto and Truck 150.000 Communications 60,000 Interest (Work in progress) 100,000 Insurance (Work in progress) 237,000 Other Variable Expense 20,000 Total Variable Expense 567,000 Fixed Operating Expense Contributions 3,000 Depreciation Equipment) 72,000 Depreciation (Building) 3,000 Insurance (Equipment) 29,000 Interest (Equipment) 20,000 Rent 44,000 Salaries 300,000 Other Fixed Expense 10,000 Total Fixed Operating Exp. 483,000 Total Operating Expense 1,050,000 Net Profit (before tax) Tax (28%) Net Profit (after tax) Dividends 0 Retained earnings 11/30/08 600,000 12/31/08 300,000 Table 3. Monthly jacome statements (9/30/08 through 12/31/08) Account 9/30/08 10/31/08 Earnings 1,200,000 900,000 Cost of Construction Labor 192,000 144,000 Material 480,000 360,000 12_Subcontracts 384,000 288,000 12 Other direct cost 24,000 18,000 Total Direct Cost 1,080,000 810,000 Gross Profit 120,000 90,000 perating Expense Variable 2150 96,000 240,000 192,000 12,000 540,000 60,000 48,000 120,000 96,000 6,000 270,000 30,000 2000 LADO 10,500 Operating Expense Variabie Fixed Total Operating Expense Net Profit (tt) Tax (25 %) Net Profit (at) 42,000 58,000 100,000 20,000 5,600 14,400 31,500 58,000 89,000 500 140 360 21,000 58,000 79,000 10,500 58,000 68,500 O A) $2,000,000 OB) $1,000,000 OC) $900,000 OD) $1,200,000
