QUESTION 13

1. A construction company is negotiating on a construction project with a three-month duration. On the last day of each month, the construction company may bill the owner for the work completed during the month. The owner pays the monthly bills one month after they are received. The owner also holds a 10% retention. Final payment is expected one month after completion of the project and includes payment of the retention. The construction company pays material suppliers in full when it receives payment from the owner. The construction company pays subcontractors when it receives for the owner but withholds 10% retention from the subcontractors payment. The construction company pays for labor weekly. Determine monthly cash flow and complete the table.