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Retention held by the owner = x% of bill to owner Retention held from the sub-y% of sub amount 7% 12% 93.00% 88.00% Sub, material, equipment, and other costs are pay when paid; Labor is paid weekly; PO is paid monthly before the payment is received from the owner (i.e. when the costs are incurred). Gross Profit Margin 23% GC will send the invoice (bill or pay apps) to the owner at the end of the month; GC will receive payment from the owner at the end of the next (following) month. All previously held Retention (month 1 & 2) will be released during month 3 and then during month 5 (month 3, 4, 5)

Retention held by the owner = x% of bill to owner Retention held from the sub-y% of sub amount 7% 12% 93.00% 88.00% Sub, material, equipment, and other costs are pay when paid; Labor is paid weekly; PO is paid monthly before the payment is received from the owner (i.e. when the costs are incurred). Gross Profit Margin 23% GC will send the invoice (bill or pay apps) to the owner at the end of the month; GC will receive payment from the owner at the end of the next (following) month. All previously held Retention (month 1 & 2) will be released during month 3 and then during month 5 (month 3, 4, 5)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Need help with the project cash flow! Money received from owner/Gc module Payments made to suppliers, labor, and sub And the bottom part
Total Direct Costs Profit &GOH (Indirect Costs) Bill To owner. Retention held by the owner = x% of bill to owner Retention held from the sub-y% of sub amount Sub, material, equipment, and other costs are pay when paid; Labor is paid weekly; PO is paid monthly before the payment is received from the owner (i.e. when the costs are incurred). Gross Profit Margin 23% GC will send the invoice (bill or pay apps) to the owner at the end of the month; GC will receive payment from the owner at the end of the next (following) month. All previously held Retention (month 1 & 2) will be released during month 3 and then during month 5 (month 3, 4, 5) Month 1 2 3 Direct Costs 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 Materials Labor Equipment Project Overhead SubContractor 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 owner) 7% 12% 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 $3,000 $5,000 $1,000 $1500 $2,000 $12,500 Money Received from Owner/GC Payments made to suppliers, labor, and sub 93.00% 88.00% $6,000 $500 $1700 $1100 $6,000 $15,300 Month with max cash need and the amount: Total amount of cash needed for the project is = $3500 $300 $200 $100 $7,000 $11,100 4 $2,000 $200 $300 $200 $2,700 $5,400 5 Totals $14,500 $8,000 $3,200 $2,900 $15,700 $44,300
Transcribed Image Text:Total Direct Costs Profit &GOH (Indirect Costs) Bill To owner. Retention held by the owner = x% of bill to owner Retention held from the sub-y% of sub amount Sub, material, equipment, and other costs are pay when paid; Labor is paid weekly; PO is paid monthly before the payment is received from the owner (i.e. when the costs are incurred). Gross Profit Margin 23% GC will send the invoice (bill or pay apps) to the owner at the end of the month; GC will receive payment from the owner at the end of the next (following) month. All previously held Retention (month 1 & 2) will be released during month 3 and then during month 5 (month 3, 4, 5) Month 1 2 3 Direct Costs 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 Materials Labor Equipment Project Overhead SubContractor 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 owner) 7% 12% 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 $3,000 $5,000 $1,000 $1500 $2,000 $12,500 Money Received from Owner/GC Payments made to suppliers, labor, and sub 93.00% 88.00% $6,000 $500 $1700 $1100 $6,000 $15,300 Month with max cash need and the amount: Total amount of cash needed for the project is = $3500 $300 $200 $100 $7,000 $11,100 4 $2,000 $200 $300 $200 $2,700 $5,400 5 Totals $14,500 $8,000 $3,200 $2,900 $15,700 $44,300
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