COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

6 Months Ended

Oct. 31, 2016

COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

NOTE 6 – COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

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 October 31, 2016 and April 30, 2016:

	October 31, 2016		April 30, 2016

Costs incurred on uncompleted contracts	$	14,244,659	$	28,884,776
Estimated contract earnings		2,994,143		4,367,463
		17,238,802		33,252,239
Less: Billings to date		18,240,180		34,253,725
Total	$	(1,001,378)	$	(1,001,486)

Costs and estimated earnings in excess of billings on uncompleted contracts	$	729,618	$	357,014
Billings in excess of cost and estimated earnings on uncompleted contracts		1,730,996		1,358,500
Total	$	(1,001,378)	$	(1,001,486)

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.