Contractor needs to know if he will need to partially finance a project, and if "yes" for which months is financing required. Determine the Cash Flow at the end of each month for the following project. The contractor must pay his employees every month. The contractor can defer paying materials and subcontractors until receiving payment from the owner. The contractor invoices the owner at the end of each month and allows the owner 30 days to pay. SO, the contractor isn't receiving payment for a billed amount until the month after he/she invoices the owner. There is NO retention. What is the positive or negative cash flow at the end of each month? Month Materials Labor Subs 1 2 3 4 5 6 Total Bill To Cash Flow 8800 8100 13100 33000 -8,100 14200 11900 31400 63200 -800 21000 19800 31700 79800 6800 7600 28100 46800 5100 17900 33000 7000 4100 4100 9300 19200 60000 58500 131500 275000 Owner To start Cash Flow for month one would be -8,100. Because The contractor has to pay labor, regardless of if paid by owner. However, contractor does not have to pay materials. nor subcontractors until paid by owner. Just prior to the end of the 2nd month, the contractor receives the first month payment from owner in the amount of $33,000.00. Contractor must immediately pay 1st month invoices for materials and subcontractors, and also pay the labor on the 2nd month, but has not received the second month owner payment of $63200. So $33,000.00 ($8,800 1st month materials + $13,100 1st month subs+ $11,900 2nd month labor = $33,800) = - 800.00. Figure out the cash flow +/- for the following months 3 through 6.

Contractor needs to know if he will need to partially finance a project, and if "yes" for which months is financing required. Determine the Cash Flow at the end of each month for the following project. The contractor must pay his employees every month. The contractor can defer paying materials and subcontractors until receiving payment from the owner. The contractor invoices the owner at the end of each month and allows the owner 30 days to. pay. SO, the contractor isn't receiving payment for a billed amount until the month after he/she invoices the owner. There is NO retention. What is the positive or negative cash flow at the end of each month? To start Cash Flow for month one would be 8,100. Because The contractor has to pay labor, regardless of if paid by owner. However, contractor does not have to pay materials nor subcontractors until paid by owner. Just prior to the end of the 2 nd month, the contractor receives the first month payment from owner in the amount of $33,000.00. Contractor must immediately pay 1 st month invoices for materials and subcontractors, and also pay the labor on the 2 nd month, but has not received the second month owner payment of $63200. So $33,000.00($8,800 1st month materials +$13,100 1st month subs +$11,9002nd month labor =$33,800)=800.00. Figure out the cash flow +1 - for the following months 3 through 6