Question: Note: Please leave the green cells untouched as it will be used for evaluating the exam and to be filled by the professor Q4. A

 Note: Please leave the green cells untouched as it will be

Note: Please leave the green cells untouched as it will be used for evaluating the exam and to be filled by the professor Q4. A general contractor GC has been awarded to construct an industrial building within a period of 8 months. The contractor sublet the project to subcontractors. Table 4 shows Questi monthly estimated cost for subcontractors. The markup of the general contractor added to the values of subcontractors is 20%. Owner will pay the general contractor 2 months from billing date and will kee contractor two months after practical completion of the project. The general contractor will pay the subcontractor (monthly cost) full amount of the cost without retention one month after each billing month. To simplify the calculation you may assume that all costs must be met at the instant they are incurred. Calculate the monthly cash needed using cash flow table in the answer sheet. 2 3 4 5 6 7 9 10 11 12 Marks 1 24000 8 20000 240.00 45000 600.00 40.000 40000 600.00 Description Montbly sub-contractor Cast Monthly Contractor profit Contractor Total Billed monthly value Monthly Ratention Total protectvalue at moth 12 Cumulative Retention Month received for Contractor Pavment to subcontractor cumulative cast cumulative payment received by contractor Monthly cash flow 125 125 11.25 1.25 1.5 1.25 1.25 125 125 1125 125 Note: Please leave the green cells untouched as it will be used for evaluating the exam and to be filled by the professor Q4. A general contractor GC has been awarded to construct an industrial building within a period of 8 months. The contractor sublet the project to subcontractors. Table 4 shows Questi monthly estimated cost for subcontractors. The markup of the general contractor added to the values of subcontractors is 20%. Owner will pay the general contractor 2 months from billing date and will kee contractor two months after practical completion of the project. The general contractor will pay the subcontractor (monthly cost) full amount of the cost without retention one month after each billing month. To simplify the calculation you may assume that all costs must be met at the instant they are incurred. Calculate the monthly cash needed using cash flow table in the answer sheet. 2 3 4 5 6 7 9 10 11 12 Marks 1 24000 8 20000 240.00 45000 600.00 40.000 40000 600.00 Description Montbly sub-contractor Cast Monthly Contractor profit Contractor Total Billed monthly value Monthly Ratention Total protectvalue at moth 12 Cumulative Retention Month received for Contractor Pavment to subcontractor cumulative cast cumulative payment received by contractor Monthly cash flow 125 125 11.25 1.25 1.5 1.25 1.25 125 125 1125 125

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!