11/16/2020 Assignment

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Question 3

(a) A cash ow forecast of a project is given in Table Q3.a. There were no [12 Marks]
construction activities during April, May and Jude due to COVID19 pandemic.
Prepare the updated cash ow forecast for the project.

Table Q3.a Cash Flow

Time Feb-20 Mar-20 Apr-20 May-20

Cum. Value 100,000 160,000 220,000 220,000

Advance 44,000 44,000 44,000 44,000

Cum Cash in 44,000 144,000 204,000 220,000

Cum Cost 80,000 140,000 190,000 190,000

Cum. Cash out - 80,000 140,000 190,000

Net Cash Flow 44,000 60,000 50,000 30,000

COVID
Notes Normal 19

Client Payment delay 1Months 2Months


Credit for payment 1 Month 2 Month

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11/16/2020 Assignment

(c) Based on the project data presented in the table, calculate for each of the [8 Marks]
projects: the revenue that would be recognized using (a) cash and (b) straight
accrual methods; additionally calculate (c) the revenue using the percentage-
of-completion method and (d) the gross pro t to date.

Project Financial Data Project 1 Project 2

Contract amount 15,000,000 15,000,000

Original estimated amount 14,400,000 14,600,000

Billed to date 10,700,000 10,700,000

Payments received to date 10,900,000 10,530,000

Cost incurred to date 11,450,000 10,350,000

Forecasted cost to complete 3,000,000 4,400,000

Costs paid to date 9,400,000 9,300,000

(d) Explain balance sheet and income and expenditure statement of a [5 Marks]
construction company.

Submission status

Submission Submitted for grading
status

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11/16/2020 Assignment

Grading status Not graded

Due date Monday, 16 November 2020, 9:40 AM

Time remaining Assignment was submitted 58 secs late

Last modi ed Monday, 16 November 2020, 9:40 AM

File submissions
PDF EN17423366 Q3.pdf

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