Determine the return on assets for the construction company in Figures 6-3 and 6-4. What insight does
Question:
FIGURE 6-3 Balance Sheet for Eastside Contractors
EASTSIDE CONTRACTORS
BALANCE SHEET
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FIGURE 6-4 Income
Statement for Eastside Contractors
EASTSIDE CONTRACTORS
INCOME STATEMENT
REVENUES .............. 2,225,379
CONSTRUCTION COSTS
Materials ................. 414,840
Labor ................. 564,783
Subcontract ................ 932,250
Equipment ............... 68,506
Other ................. 2,761
Total Construction Costs .......... 1,983,140
EQUIPMENT COSTS
Rent and Lease Payments ......... 21,654
Depreciation ............... 18,203
Repairs and Maintenance .......... 10,805
Fuel and Lubrication ........... 16,982
Taxes, Licenses, and Insurance ....... 862
Equipment Costs Charged to Jobs ...... 68,506
Total Equipment Costs ........... 0
GROSS PROFIT ............. 242,239
OVERHEAD ................ 207,805
NET PROFIT FROM OPERATIONS .... 34,434
OTHER INCOME AND EXPENSE ...... 7,813
PROFIT BEFORE TAXES ......... 42,247
INCOME TAX ............. 7,774
PROFIT AFTER TAXES ......... 34,473
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
The average total assets is calculated as follows ...View the full answer
Construction accounting and financial management
ISBN: 978-0135017111
2nd Edition
Authors: Steven j. Peterson
