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<br />SOUTHEASTERN ENGINEERING CONTRACTORS, INC.
<br />NOTES TO THE FINANC1AL STATEMENTS
<br />
<br />NOTE 3 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS
<br />
<br />Costs incurred on uncompleted contracts
<br />Estimated earnings
<br />
<br />2009
<br />$ 29,429,865
<br />5,779,166
<br />35,209,031
<br />(39,686,133)
<br />$ (4,477,102)
<br />
<br />Less: billings to date
<br />
<br />Costs and estimated earnings in excess of billings
<br />on uncompleted contracts
<br />Billings in excess of costs and estimated
<br />earnings on uncompleted contracts
<br />
<br />$
<br />
<br />(4,477,102)
<br />$ (4,477,102)
<br />
<br />NOTE4-BACKLOG
<br />
<br />2008
<br />$ 19,485,216
<br />3,736,798
<br />23,222,014
<br />(26,019,877)
<br />$ (2,797,863)
<br />
<br />$ 115,913
<br />
<br />(2,913,776)
<br />$ (2,797,863)
<br />
<br />The following is a reconciliation of backlog representing signed contracts in existence as of
<br />June 30:
<br />
<br />Balance at the beginning of the year
<br />Contracts and adjustments
<br />
<br />2009
<br />$ 53,937,241
<br />(205,354)
<br />53,731,887
<br />(10,226,909)
<br />$ 43,504,978
<br />
<br />Less: contract revenues earned for six months
<br />Balance at the end of the six months
<br />
<br />2008
<br />. $ 16,052,605
<br />5,365,372
<br />21,417,977
<br />(7,260,004)
<br />$ 14,157,973
<br />
<br />The Company assures that all contract cost pertaining to the financial statements for the six
<br />months ended June 30, 2009 have been included.
<br />
<br />NOTE 5 - CONCENTRATION OF CREDIT RISK
<br />
<br />The Company maintains its cash balances in a financial institution in Miami, Florida. The
<br />balances are insured by the Federal Deposit Insurance Corporation up to $100,000.
<br />Temporary additional protection of $150,000 has been extended by the FDIC through
<br />December 31, 2009. These balances may at times exceed insured limits.
<br />
<br />The Company as of June 30, 2009, had 98 % of their receivables with four customers.
<br />
<br />The Company as of June 30, 2008, had 82 % of their receivables with two customers.
<br />
<br />. 8
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