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Home My WebLink AboutNunez Construction - Financial - exempt tor *IP NUNEZ CONSTRUCTION, INC. FINANCIAL STATEMENTS 41,0 TABLE OF CONTENTS DECEMBER 31,2017 Page Independent AccountantsReview Report 2-3 Balance Sheet 4 Statement of Operations and Retained Earning 5 Statement of Cash Flows 6 Notes to the Financial Statements 7-10 Air Supplementary Information * ; -;,.;2 Schedule of contracts Completed 12 Schedule of Contracts infrogress 13 (air toire 411, iiir 41110 Ir► INDEPENDENT ACCOUNTANTS'REVIEW REPORT 1100 1100 Board of Directors Nunez Construction,Inc. South Miami, Florida r ,t„ The accompanying financial statements of Nunez Construction,Inc. (an"S"Corporation),which comprise the balance sheet as of December 31, 2017, and the related statements of operations and retained earnings and h for the yearrelatedthefinancial then ended,and the notes to stints have been reviewed.A review includcases flows n� primarily applying analytical procedures to management's to and making inquiries of company management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole Ac rdingly, no such opzn.ion is expressed. a Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presen at on of these financial statements in accordance 111, with accounting principles generally accepted n the; netted States of America; this includes the design, implementation, and maintenance of ial contr`&clevant to the preparation and fair presentation of financial n rn 1101, statements that are free from material nisst2tement. law 3v Accountants'Responsibility 's 111, Our responsibility is to'. onduct,;the�repew engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the American ifir Institute of Certified Pubic AccounFnts. Those standards require us to perform procedures to obtain limited assurance as a basis for re'gplk ting whither we are aware of any material modifications that should be made to the financial statements for them to!c 1 f accordance with accounting principles generally accepted in the United States of America. The results of our procedures provide a reasonable basis for our conclusion. Accountants'Conclusion 41100 Based on our review, we are not aware of any material modifications that should be made to the accompanying Ilr financial statements in order for them to be in accordance with accounting principles generally accepted in the United States of America. 1160 lir 411, �Mlr, Iry it Iry + I+ Supplementary Information The supplementary information included in the accompanying schedules is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from, and relates directly to, the underlying accounting and other records used to girr prepare the financial statements. The supplementary information has been subjected to the review procedures illir applied in our review of the basic financial statements.We are not aware of any material modifications that should +11+ be made to the supplementary information.We have not audited the supplementary information and do not express an opinion on such information. : Bra-ford&Associates, P.A. lilr Certified Public Accountants 1111, June 15,2018 tills � ' ley • 4, lir 110, �1r lir S r S low +�1rr 'rr r ' " NUNEZ CONSTRUCTION,INC. BALANCE SHEET DECEMBER 31,2017 (READ THE INDEPENDENT ACCOUNTANTS' REVIEW REPORT) rte► r ASSETS lir Current Assets Cash $ 695,301 Contracts receivable 901,377 Air Costs and estimated earnings in excess it of billings on uncompleted contracts 18,150 to 1,614,828 Property and Equipmentlir less accumulated depreciation of$21,549 11,873 Total $ 1,626,701 Air + r► LIABILITIES AND STOCKHOLDER'S EQUITY rr Current Liabilities 3, Accounl'sfpayable A $ 291,292 Bank line of credit - Billings in excess ot;eosts and estimated 411, earnings on uncompleted contracts 245,395 'a' 536,687 Stockholder's Equity r Common stock 500 ,i, Additional paid in capital 650,000 Retained earnings 439,514 stio 1,090,014 Oir Total $ 1,626,701 46, +err +rr The accompanying notes to the financial statements are an wiry integral part hereof and should be read. -4- lir 4rrr r olor girf NUNEZ CONSTRUCTION, INC. STATEMENT OF OPERATIONS AND RETAINED EARNINGS r FOR THE YEAR ENDED DECEMBER 31,2017 mor (READ THE INDEPENDENT ACCOUNTANTS' REVIEW REPORT) Ir Revenues Contracts Completed (schedule) $ 1,486,050 fir► Contracts in Progress (schedule) 3,425,343 +fir 4,911,393 tir Cost of Revenues 3,774,952 Gross Profit 1,136,441 General and Administrative Expenses" 624,329 tip +fir Net Income • 512,112 Retained Earnings-Beginning 542,990 Stockholder Profit Diitrbutions (615,588) Retained.Ea nings -Taid $ 439,514 yisr tit Oir r 410, The accompanying notes to the financial statements are an integral part hereof and should be read. -5- %r y1r NUNEZ CONSTRUCTION,INC. STATEMENT OF CASH FLOWS r FOR THE YEAR ENDED DECEMBER 31,2017 416* (READ THE INDEPENDENT ACCOUNTANTS'REVIEW REPORT) wir CASH FLOWS FROM OPERATING ACTIVITIES Net Income $ 512,112 Adjustments to reconcile net income to net cash provided by operating activities tiro Depreciation 15,615 411, (Increase) Decrease in: Contracts receivable 521,154 Costs and estimated earnings in excess of billings on uncompleted contracts (18,150) + ► Increase (Decrease) in: r Accounts payable = 10,206 Billings in excess of costs and esttated earnings on uncompleted contracts: (463,331) 11110 Cash Provided by Operating Activities 577,606 fir► +fir CASH FLOWS FROM INVESTING ACTIVITIES 41110 Acquisition of Property ui &`' pment (12,649) Cash UsRd byInvbng Activities (12,649) gir CASH FLOWS FRONT FINANCING ACTIVITIES ver Proceeds fron'bank line of credit 800,000 Repayments of bank line of credit (900,000) Stockholder profit distributions (615,588) Cash Used by Financing Activities (715,588) v ► Decrease in Cash (150,631) Cash-Beginning ' 845,932 fly Cash-End $ 695,301 t The accompanying notes to the financial statements are an integral part hereof and should be read. -6- r +rr *sr NUNEZ CONSTRUCTION,INC. ' NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2017 (READ THE INDEPENDENT ACCOUNTANTS' REVIEW REPORT) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES + r Business Activity The Company is a Florida state-licensed General Contractor and provides construction for residential and commercial projects, generally located in South Florida. Revenue and Cost Recognition + The Company recognizes revenues on the percentage-of-completion method, measured by the percentage of costs incurred to date to estimated total costa for each contract. Management considers total cost to be the best available measure t f progress a the contracts. Because of the INF inherent uncertainties in estimating costs, it is,At least reasonably possible that the estimates Oir used will change. ter Contract costs include all direct material and labor costs and those indirect costs related thereto. on Provisions for estimated losses on uncompletedtracts are made in the period in which such losses are determined. Changes in estimated lob profitability resulting from job performance, job conditions, and change orders"are accounted for as changes in estimates in the current rr period. Costs and estimated earnings m excess of billings on uncompleted contracts represent revenues recognized in excess of amounts billed. Billings in excess of costs and estimated earnings on uncompleted contracts represents billings in excess of revenues recognized. Cash 410, The Company maintains cash accounts in two institutions which are insured by the Federal lir► Deposit Insurance Corporation up to$250,000 each. Management believes no significant risk of loss exists. Contracts Receivable +1r The Company records a receivable when interim billings are made on a contract in progress net of the allowance for doubtful accounts. Contracts receivable are written off when they are tar determined to be uncollectible. The allowance for doubtful accounts is estimated based on the lair Company's historical losses, the existing economic conditions in the construction industry, and lilt the financial stability of its customers. 111, -7- +ir irr r 41110 NUNEZ CONSTRUCTION, INC. NOTES TO THE FINANCIAL STATEMENTS +1r FOR THE YEAR ENDED DECEMBER 31,2017 1110 (READ THE INDEPENDENT ACCOUNTANTS'REVIEW REPORT) iiir tar NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Property and Equipment Property and Equipment are recorded at historical cost and are being depreciated on the straight line method over useful lives of five to seven years. Repairs and maintenance costs which do not increase the useful lives of the assets are charged to operations as incurred. Income Taxes The Company has elected to be taxed as an"S" Corporation Accordingly, income or losses are 4Ir reported by the stockholder for federal taxation poses. Theefore, no provision for income taxes has been made in the financial statements.. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported +fir amounts and disclosures. Accordingly, actual results could differ from those estimates. NOTE 2 - CONTRACTS RECEIVABLE Consistent with industry pra t ces,4erim billings include retainage that will be collected at the completion of the job. RetainAge i t'the amount of $22,894 has been included in contracts receivable as the contracts are short in duration. The Company follows the practice of filing statutory liens on all construction projects. Contracts receivable at December 31,2017 consisted of amounts due on both completed and uncompleted projects. Contracts receivable from one contract represented approximately 80% of total contracts receivable. There was no provision for bad debt expense for the year ended December 31, 2017. NOTE 3 - BANK LINE OF CREDIT The Company has a line of credit from Total Bank in the amount of$100,000. The line of credit expires on September 30,2018 and has a variable interest rate based upon the prime interest rate plus 2% which was 6.5% at December 31, 2017. The line of credit is guaranteed by the sole 'o' stockholder of the company. There was no outstanding balance at December 31,2017. Ar 'err err. -8- tor NUNEZ CONSTRUCTION,INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2017 (READ THE INDEPENDENT ACCOUNTANTS' REVIEW REPORT) 4 NOTE 4- CONTRACTS IN PROGRESS Costs, estimated earnings, and billings on uncompleted contracts are summarized as follows: Costs incurred on uncompleted contracts $ 6,008,819 r Estimated earnings 1,842,634 7,851,453 Less Billings to date (8,078,698) $ (227,245) Oliv Costs and estimated earnings in excess 4,4 of billings on uncompleted contracts �, $ 18,150 Billings in excess of costs and estimated* earnings on uncompleted contracts (245,395) $ (227,245) fir+ NOTE 5 - STOCKHOLDER'S EQ YITY The Company has 500 shares of cbmxnon.stock authorized, issued and outstanding at $1 par value. Additional paid in capital is restricted solely to use for Company operations. lilt► NOTE 6-RELATED PARTY TRANSACTIONS ter► The Company paid ofce verhead for the year ended December 31, 2017 totaling approximately$15,000 to aompany in which the stockholder holds a one-half interest. NOTE 7- SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION +floc Cash paid for interest and income taxes for the year ended December 31, 2017 were as follows: lir Interest $ 2,953 +�irr Income Taxes $ - +1 r %), -9- * + r 'err► 11160 �Ilr+ NUNEZ CONSTRUCTION, INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2017 (READ THE INDEPENDENT ACCOUNTANTS' REVIEW REPORT) err NOTE 8 - CONCENTRATIONS 'SID IOW Approximately 80% of the Company's revenue for the year ended December 31, 2017 was derived from three construction projects. 1111" NOTE 9- SUBSEQUENT EVENTS 111100 Management has evaluated subsequent events through June 15, 2018, which was the date the financial statements were available to be issued,and that n4„material events have occurred that require adjustment to, or disclosure in,the financial statements wry , IOW 111, r 111, r 111110 w 41, ar +rr ler .rr -10- nrr AMY rrr► ger liW 410 111, 41, 1100 IOW rbr NUNEZ CONSTRUCTION,INC. viw SUPPLEMENTARY INFORMATION tir DECEMBER 31,2017 4100 (REVIEWED) wwr' 40 ler 411100 111110 vir IOW r 1111, +fir' viis +i1�I r +irr err sir +1r 1111, 411W • NUNEZ CONSTRUCTION, INC. SCHEDULE OF CONTRACTS COMPLETED FOR THE YEAR ENDED DECEMBER 31,2017 (READ THE INDEPENDENT ACCOUNTANTS' REVIEW REPORT) 11, Total Contract For the Year Ended December 31,2017 IMF Contract Revenues Cost of Project Amount Gross Profit Earned Revenues Gross Profit Estefan Kitchen at Design District $ 2,321,206 $ 407,411 $ 986,758 $ 831,110 $ 155,648 JMH-Einstein Bros Bagels 603,814 110,967 "' 83,629 70,333 13,296 1.11` JMH-Starbucks 507,771 127,983 78,827 67,758 11,069 Small Jobs 336,836 114,510 ;.. 336,836 222,326 114,510 Total $ 3,769,627 $„__.0760,871 $ x1,486,050 $ 1,191,527 $ 294,523 411, wr 4 4P, 4gD 1111, 4111, IOW 11, vir 411, r 1.00 The accompanying notes to the financial statements are an integral part hereof and should be read. -12- law low 4 410 410 • 1 410 +Ili► 4110 410 NUNEZ CONSTRUCTION,INC. SCHEDULE OF CONTRACTS IN PROGRESS FOR THE YEAR ENDED DECEMBER 31,2017 41110 say (READ THE INDEPENDENT ACCOUNTANTS'REVIEW REPORT) 410 Total Contract From Inception to December 31,2017 Before January 42017 At December 31,2017 For the Year Ended December 31,2017 Costs and Billings In Estimated Excess of Estimated Earnings In Costs and Contract Estimated Revenues Cost of Pro�ees Cost to R C t of "' Excess of Estimated Revenues Cost of percent Project Amount Gross Profit Earned Revenues Gross Profit Billings Complete Earned ''.1 Revenues Gras.pruft Billings Earnings Earned Revenues Gross Profit Complete Amefican Airlimro b' Admirals Club $ 5,212,137 $ 1,185,024 $ 5,202,732 $4,019,846 $1,182,886 S 5,184,582 $ 7,267 $ 4A24110 $ 421394 $ 1,000,716 $ 18,150 $ - $ 776,622 $ 594,452 S 182,170 99% Imiiauto Marangoni 2,286,808 559,301 2,137,302 1,614,567 522,735 2,218,929 112,940 e'" ! - - - 81,627 2,137,302 1644,567 522,735 93% lario's Apartments 570,285 143,815 92,169 68,926 23,243 179,595 157544 - `5 - - - 87426 92,169 68,926 23,241 16% IOW DFA Ralph Lauren 285,888 78,178 211,166 153421 57,745 228,940 54,224'. y1 . - - - 17,774 211,166 153,421 57,745 74% DFA-Johnnie Walker 238,788 64,890 200,819 146,247 54,572 238,788," 7651 .7 - - - - 37,969 200,819 196,247 14,572 84% Smell Joh, 27,864 5,572 7,265 5,812 1,451 ,77864 16480 - - - - 20,599 7,265 5,812 1,451 26% 410 Totals $ 8,621,770 $ 2,036780 $7,851,453 $ 6,208,819 $1,842,634 1:$378698*4',$1617( $4,426,110 $ 3425,394 $ 1,000716 $ 18,150 $ 245,395 $1425,343 $ 2,583,425 $ 841918 7 't„. 11110 VIP INF .4 410 410 1110 4110 The accompanying notes to the financial statements are an integral part hereof and should be read. -13- 1 4110 4110 4111100 D X11 411,