is received from the owner Month with max cash need and the amount: 7 Total amount of cash needed for the project is =
is received from the owner Month with max cash need and the amount: 7 Total amount of cash needed for the project is =
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Need help filling this project cash flow !!
Please show answers in table format!
Transcribed Image Text:+
Retention held by the owner-x% of bill to
owner
Retention held from the sub-y% of sub
amount
10%
90.00%
Sub, equipment, and other costs are pay when paid except the following: 100 % Labor is paid bi-weekly; 45% PO, 35% of the Material, 15% of equipment cost is paid monthly before the payment is received from the owner; rest is pay when paid.
Gross Profit Margin
28%
All previously held Retention will be released during month 4 (jalcuing month 4) and month 7 (including month 2) and month 11
You will send the invoice (bill to owner) to owner at the end of the month; you will receive payment one month after the invoice is sent and if the invoice is sent on time. Assume all invoices were sent to owner on time.
Month
1
2
3
4
6
7
8
9
5
Direct Costs
$3,000
Materials
Labor
Equipment
Project Overhead
SubContractor
Total Direct Costs
Profit &GOH (Indirect Costs)
Bill To owner
Money Received from the owner
Retention held by the owner
Retention released by the owner
Total Money Received (Cash In)
Paid for Materials
Paid for Labor
Paid to Equipment Supplier
Paid to Project Overhead
Paid to SubContractor
Retention held from Sub Contractor
Retention released to the Sub
Total Payments (Cash out)
Net Cash Flow at Month's end (Cash in - Cash
out)
Total cash generated at Month's end
(after payment is received from the owner)
Cash needed for the project before payment is
received from the owner
Effective Cash needed for the project before
payment is received from the owner
Total Cash invested in the project before
payment is received from the owner
8%
$5,000
$2,700
$1,000
$1,500
$4,000
$14,200
92.00%
Month with max cash need and the amount:
$6,000
$500
$1,700
$1,100
$6,000
$15,300
Total amount of cash needed for the project is =
$3,500
$300
$200
$100
$7,000
$11,100
$2,000
$200
$300
$200
$2,700
$5,400
$3,000
$4,000
$500
$2,000
$12.500
Money Received from Owner/GC (CASH IN)
$4,000
$4,000
$1,000
$500
$4,000
$13,500
Payments made to suppliers, labor, and sub (CASH OUT)
Cash Flow Module
CASH INVESTED
$8,000
$18,000
$2,700
$0
$1,000
$29,700
$9,000
$3,000
$1,200
$500
$4,000
$17,700
$1,000
$2,000
$200
$900
$1,000
$5,100
10
11
0.00
0.00
Totals
$41.500
$33,700
$12,300
$5,300
$31,700
$124,500
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