Page 72 - PC Tax RFP

THE PERRYCOMPANY OF 7TH AVENUE, INC. NOTES TO REVIEWED FINANCIAL STATEMENTS DECEMBER 31, 2015
NOTE 10: CONTRACT BACKLOG (continued)
Contract revenues backlog on uncompleted contracts as of December 31, 2015
Contract adjustments, change orders in 2015 Contract revenues for new contracts, 2015
Contract revenues earned in 2015 Contracts Backlog at December 31, 2015
THE PERRY COMPANY
$7,471,288 2,474,478 25,373,037
35,318,803 (21,244,969)
$14,073,834
In addition, between January 1, 2016 and May 13, 2016, the Company entered into additional construction contracts with revenues of $6,690,113.
NOTE 11: FINANCIAL INSTRUMENTS, AND CONCENTRATION OF CREDIT RISK
The Company’s financial instruments include cash, accounts receivable-trade, accounts payable, long-term debt and due to stockholders. Financial instruments that are exposed to concentration of credit risk consist primarily of cash and accounts receivable-trade. The Company places its temporary cash investments in what management believes to be high quality financial institutions. At December 31, 2015 and at various times during the year, the Company maintained cash bank balances in excess of FDIC insurable limits. The Company has no collateral on its accounts receivable. All of the Company’s financial instruments are recorded at cost, which is deemed to approximate fair value.
During 2014 $9,305,182 of the revenues recognized were derived from one contract that was completed in 2015.
NOTE 12: DATE OF MANAGEMENT’S REVIEW
In accordance with the accounting and disclosure requirements for subsequent events, management has evaluated subsequent events through the date of the independent auditor’s report on page one, which is the date the financial statements were available to be issued. Subsequent events occurring after this date have not been evaluated by management. No material events have occurred since December 31, 2015 that require recognition or additional disclosure in the financial statements besides the items already disclosed in these notes.
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