Laserfiche WebLink
II <br />TENEX ENTERPRISES, INC. <br />NOTES TO FINANCIAL STATEMENTS <br />FOR THE SIX MONTHS ENDED . UNf —E 30, 2007 <br />tNOTE A - SUNI EVIA-1-UY OF SIGNIF-ICA1i T :�CCOb-ii i TING POLICIES (continued) <br />Denreciation <br />' <br />Depreciation is provided principally on the straight -line method over the estimated useful lives <br />p P <br />of the assets, which are generally from five to seven years. <br />' LZcome taxes <br />Income taxes are provided for the tax effects of transactions reported in the financial statements <br />' and consist of taxes currently due plus deferred taxes related primarily to the difference between <br />the bases of long -term contracts for financial reporting and income tax reporting. The deferred <br />taxes represent the future tax return consequences of those differences, which will either be <br />' taxable or deductible when the assets and liabilities are recovered or settled. For tax purposes, <br />the Company uses the cash method of recognizing revenues on long -term contracts. The bases <br />of long-term. contracts for financial reporting, exceed the tax bases. The excess will be taxable <br />when the contracts receipts are collected and costs are disbursed. <br />' <br />NOTE B - CONTRACT RECEIVABLES <br />Contract receivables consist of: <br />Billed <br />Completed contracts <br />$ 11 0,064 <br />' <br />Contracts in progress <br />930,021 <br />Retainage <br />541,501 <br />' <br />Other short tern jobs <br />435.63° <br />$ 2.025.524 <br />