The second question: a contract was referred for a period of 7 months. Below, starting from the signing of the contract to reach the total contracting price ($ 100,000), assuming that the contractor has guaranteed a profit of the amount. 15% Deduction of insurances is according to the general conditions of contracting, maintenance period is 6 months. The contractor was one month late in completing the contract, so he had to pay ($ 100) for each day of delay (assuming the month is 30 days) (the maintenance period appears after the completion of the work). It is required to complete the cash flow and net cash flow accounts and find the largest amount that is required to be provided by the contractor and the date the amount is needed. Note that the contractor is entitled to an advance every month, and the procedures for paying the advance take two months. The table below shows the value of the work done for each month End of month Monthly Value of work *1000$ 1 13 2 12 3 14 4 15 5 10 11 7 15 8. 10
The second question: a contract was referred for a period of 7 months. Below, starting from the signing of the contract to reach the total contracting price ($ 100,000), assuming that the contractor has guaranteed a profit of the amount. 15% Deduction of insurances is according to the general conditions of contracting, maintenance period is 6 months. The contractor was one month late in completing the contract, so he had to pay ($ 100) for each day of delay (assuming the month is 30 days) (the maintenance period appears after the completion of the work). It is required to complete the cash flow and net cash flow accounts and find the largest amount that is required to be provided by the contractor and the date the amount is needed. Note that the contractor is entitled to an advance every month, and the procedures for paying the advance take two months. The table below shows the value of the work done for each month End of month Monthly Value of work *1000$ 1 13 2 12 3 14 4 15 5 10 11 7 15 8. 10
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The second question: a contract was referred for a period of 7 months.
Below, starting from the signing of the contract to reach the total
contracting price ($ 100,000), assuming that the contractor has guaranteed
a profit of the amount. 15% Deduction of insurances is according to the
general conditions of contracting, maintenance period is 6 months. The
contractor was one month late in completing the contract, so he had to pay
($ 100) for each day of delay (assuming the month is 30 days) (the
maintenance period appears after the completion of the work). It is required
to complete the cash flow and net cash flow accounts and find the largest
amount that is required to be provided by the contractor and the date the
amount is needed. Note that the contractor is entitled to an advance every
month, and the procedures for paying the advance take two months. The
table below shows the value of the work done for each month
End of month
Monthly Value of work *1000$
13
12
1
2
3
14
4
15
10
6.
11
7
15
8
10
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