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<br />BUDGET CONSTRUCTION CO., INC. AND BUDGET HOLDINGS, LLC
<br />NOTES TO THE COMBINED FINANCIAL STATEMENTS
<br />Years Ended December 31, 2008 and 2007
<br />
<br />NOTE I - Summary of operations and significant accounting policies (Continued):
<br />
<br />Fair Value (Continued):
<br />The Financial Accounting Standards Board issued SFAS No. 159, The Fair Value Option for Financial
<br />Assets and Liabilities ("SF AS 159"). SF AS 159 permits entities to choose to measure many financial
<br />instruments and certain other items at fair value. Unrealized gains and losses on items for which the fair
<br />value option has been elected are reported in earnings. SF AS 159 is effective for The Company
<br />beginning January I, 2008. Management has chosen not to elect the fair value option.
<br />
<br />NOTE 2 - Contracts receivable, net:
<br />
<br />At December 31, 2008, contracts receivable of The Company are summarized as follows:
<br />
<br />Total
<br />
<br />Outstanding Outstanding Total
<br /> less than more than Current
<br /> 90 days 90 days Receivable
<br />$ 2,063,051 $ 19,941 $ 2,082,992
<br /> 457,563 203,592 661,155
<br /> 199,800 372,052 571 ,852
<br />$ 2,720,414 $ 595,585 $ 3,315,999
<br /> Total Unbilled
<br /> Retainage
<br /> Receivable
<br /> $ 1,430,572
<br /> 6,450
<br /> $ 1,437,022
<br />
<br />Currently due on contracts:
<br />
<br />Uncompleted contracts
<br />Completed contracts
<br />Billed retainage
<br />
<br />Retainage due on contracts:.
<br />
<br />Uncompleted contracts
<br />Completed contracts
<br />
<br />Total
<br />
<br />During the year ended December 31, 2008, one customer accounted for approximately 40% of The
<br />Company accounts receivable. Total accounts receivable due from this customer amounted to
<br />approximately $1,879,193.
<br />
<br />NOTE 3 - Costs and estimated earnings on uncompleted contracts:
<br />
<br />Costs and estimated earnings on uncompleted contracts of The Company are derived as follows:
<br />
<br />Billings to date
<br />
<br />December 31,
<br />2008 2007
<br />$ 15,946,864 $ 11,856,549
<br />4,702,378 3,987,892
<br />20,649,242 15,844,441
<br />(20,856,106) (16,224,041)
<br />$ (206,864) $ (379,600)
<br />
<br />Costs incurred on uncompleted contracts
<br />Profit earned to date
<br />
<br />9
<br />
<br />Benitez & Company, CPA's
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