A small renovation project is to be completed by a general contractor in 6 months for a total cost of $250,000. The projected monthly total cost (value) of work scheduled for the project is as shown in Table 2. Table-2: Projected Monthly Total Cost Month 1 2 3 4 5 6 Total cost $20,000 $30,000 $60,000 $75,000 $50,000 $15,000 The breakdown of the cost is as follows: Labor = 30% Equipment = 10% Material = 40% GC/Overhead 10% (GC = General Conditions) Profit - 10% 1) Contractor's Income: a. Payment invoice to owner is submitted monthly on the last day of the month b. Owner's payment is issued 15 days after receiving invoice. c. Retainage is 10% applied to each invoiced payment for the entire project duration. Retainage is paid back in full two months after project completion. 2) Contractor's Expense: a. Labor, equipment and GC/Overhead costs incurred in a given month are expensed at the end of the same month. b. Material costs incurred in a given month are expensed at the end of the following month. 3) A $10,000 residual cash funds (from completing another project will be available to the contractor mid of month four (4) to use towards financing his current project. A small renovation project is to be completed by a general contractor in 6 months for a total cost of $250,000. The projected monthly total cost (value) of work scheduled for the project is as shown in Table 2. Table-2: Projected Monthly Total Cost Month 1 2 3 4 5 6 Total cost $20,000 $30,000 $60,000 $75,000 $50,000 $15,000 The breakdown of the cost is as follows: Labor = 30% Equipment = 10% Material = 40% GC/Overhead 10% (GC = General Conditions) Profit - 10% 1) Contractor's Income: a. Payment invoice to owner is submitted monthly on the last day of the month b. Owner's payment is issued 15 days after receiving invoice. c. Retainage is 10% applied to each invoiced payment for the entire project duration. Retainage is paid back in full two months after project completion. 2) Contractor's Expense: a. Labor, equipment and GC/Overhead costs incurred in a given month are expensed at the end of the same month. b. Material costs incurred in a given month are expensed at the end of the following month. 3) A $10,000 residual cash funds (from completing another project will be available to the contractor mid of month four (4) to use towards financing his current project