Determine the working capital turns for the construction company in Figures 6-3 and 6-4. What insight does this give you into the companys financial operations?FIGURE 6-3 Balance Sheet for Eastside ContractorsEASTSIDE CONTRACTORSBALANCE SHEET FIGURE 6-4 IncomeStatement for Eastside ContractorsEASTSIDE CONTRACTORSINCOME STATEMENTREVENUES .............. 2,225,379CONSTRUCTION COSTSMaterials ................. 414,840Labor ................. 564,783Subcontract ................ 932,250Equipment ............... 68,506Other ................. 2,761Total Construction Costs .......... 1,983,140EQUIPMENT COSTSRent and

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!
Determine the working capital turns for the construction company in Figures 6-3 and 6-4. What insight does this give you into the company€™s financial operations?
FIGURE 6-3 Balance Sheet for Eastside Contractors
EASTSIDE CONTRACTORS
BALANCE SHEET

Determine the working capital turns for the construction company in Figures

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
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...
Related Book For answer-question

Construction accounting and financial management

2nd Edition

Authors: Steven j. Peterson

ISBN: 978-0135017111