COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

12 Months Ended

Apr. 30, 2015

COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

NOTE 4 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

The asset, “Costs and estimated earnings in excess of billings on uncompleted contracts”, represents revenue recognized in excess of amounts billed. The liability, “Billings in excess of costs and estimated earnings on uncompleted contracts”, represents billings in excess of revenue recognized. Costs and estimated earnings on uncompleted contracts consist of the following at April 30, 2015 and 2014:

	April 30, 2015		April 30, 2014

Costs incurred on uncompleted contracts	$	32,008,307	$	14,457,907
Estimated contract earnings		6,031,338		3,291,077
		38,039,645		17,748,984
Less: Billings to date		38,965,672		18,766,199
Total	$	(926,027)	$	(1,017,215)

These amounts are included in the accompanying balance Sheets under the following captions:

Costs and estimated earnings in excess of billings on uncompleted contracts	$	420,434	$	431,348
Billings in excess of cost and estimated earnings on uncompleted contracts		1,346,461		1,448,563
Total	$	(926,027)	$	(1,017,215)

Revisions in the estimated gross profits on contracts and contract amounts are made in the period in which circumstances requiring the revisions become known. Although management believes it has established adequate procedures for estimating costs to complete on open contracts, it is at least reasonably possible that additional significant costs could occur on contracts prior to completion.

Although management believes it has established adequate procedures for estimating costs to complete open contracts, additional costs could occur on contracts prior to completion.