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ROHL NETWORKS LIMITED PARTNERSHIP
<br /> NOTES TO FINANCIAL STATEMENTS
<br /> (SEE INDEPENDENT ACCOUNTANTS REVIEW REPORT)
<br /> OCTOBER 31,2013 AND 2012
<br /> 3. COSTS, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS
<br /> The following is a summary of costs,estimated earnings and billings on uncompleted contracts at October 31:
<br /> 2013 2012
<br /> Costs incurred on uncompleted contracts $ 6,307,380 $ 13,208,382
<br /> Estimated earnings,net of losses 40,000 2,373,247
<br /> 6,347,380 15,581,629
<br /> Less billings to date (6,475,311) (16.115,633)
<br /> l $ (127,931) $ (534,004)
<br /> Included in the accompanying balance sheets under the following caption:
<br /> 2013 2012
<br /> Costs and estimated earnings in excess of billings on uncompleted contracts $ 96,717 $ 118,105
<br /> Billings in excess of costs and estimated earnings on uncompleted contracts (224,648) (652,109)
<br /> $ (127,931) $ (534,004)
<br /> 4. RELATED PARTY TRANSACTIONS
<br /> During 2011,the Partnership loaned$81,940 to the President of the Partnership which was repaid during the year
<br /> ended October 31,2012.Additionally,the Partnership borrowed$500,000 and$200,000 from a partner in April 2013
<br /> and March 2012,respectively,due to short term cash flow needs.There is no interest associated with the loan and it
<br /> will not be repaid until after October 31, 2014. During the year ended October 31,2012,the Partnership offset the
<br /> amounts due from the President against this borrowing. At October 31, 2013 and 2012, the balance was
<br /> approximately $618,000 and $118,000, respectively, reflected as'Due to partner in the accompanying balance
<br /> sheets.
<br /> 5. PROPERTY AND EQUIPMENT, NET
<br /> Property and equipment consist of the following at October 31:
<br /> 2013 2012
<br /> Furniture,fixtures,and equipment $ 14,260 $ 14,260
<br /> Computers 33,900 33,900
<br /> Transportation equipment 450,060 318,435
<br /> Leasehold improvements 11,463 11,463
<br /> 509,683 378,058
<br /> Less accumulated depredation and amortization (180,529) (82,558)
<br /> $ 329,154 $ 295,500
<br /> Depredation and amortization expense for the years ended October 31,2013 and 2012 was approximately$98,000
<br /> and S62,000,respectively.
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