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<br />NOTE 2.
<br />
<br />CONTRACT RECEIVABLES
<br />
<br />Contract receivables at December 31, 2009 and 2008 consisted of the following:
<br />
<br /> 2009 2008
<br />Contract receivables $ 2,436,305 $ 5,720,272
<br />Retainage 1,217,365 2,005,750
<br /> 3,653,670 7,726,022
<br />Less: allowance for doubtful accounts ( 24,247) ( 24,837)
<br /> $ 3,629,423 $ 7,701,185
<br />
<br />NOTE 3.
<br />
<br />CONTRACTS IN PROGRESS
<br />
<br />Contracts in progress at December 31, 2009 and 2008 consisted of the following:
<br />
<br /> 2009 2008
<br />Costs incurred on uncompleted contracts $ 52,448,289 $ 82,417,122
<br />Estimated profit recognized 2,240,946 4,775,090
<br /> 54,689,235 87,192,212
<br />Billings on uncompleted contracts ( 57,574,224) ( 91,590,107)
<br /> $( 2,884,989) $( 4,397,895)
<br />
<br />These amounts are included in the accompanying balance sheets as follows:
<br />
<br /> 2009 2008
<br />Costs and estimated earnings in excess of
<br />billings on uncompleted contracts $ 311,502 $ 369,313
<br />Billings in excess of costs and estimated
<br />earnings on uncompleted contracts ( 3,196,491) ( 4,767,208)
<br /> $( 2,884,989) $( 4,397,895)
<br />
<br />The asset "Costs and estimated earnings in excess of billings on uncompleted
<br />contracts" represents revenues recognized in excess of amounts billed.
<br />
<br />The liability "Billings in excess of costs and estimated earnings on uncompleted
<br />contracts" represents billings in excess of revenues recognized. Liabilities related to
<br />long-term contracts are included in current liabilities in the accompanying balance
<br />sheets, although they will be liquidated in the normal course of contract completion,
<br />which may require more than one year.
<br />
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