COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

3 Months Ended

Jul. 31, 2017

COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

NOTE 6 – 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 July 31, 2017 and April 30, 2017:

	July 31, 2017		April 30, 2017

Costs incurred on uncompleted contracts	$	17,191,287	$	16,362,011
Estimated contract earnings		3,849,901		3,714,584
		21,041,188		20,076,595
Less: Billings to date		23,618,114		21,771,566
Total	$	(2,576,926)	$	(1,694,971)

Costs and estimated earnings in excess of billings on uncompleted contracts	$	334,956	$	410,826
Billings in excess of cost and estimated earnings on uncompleted contracts		2,911,882		2,105,797
Total	$	(2,576,926)	$	(1,694,971)

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.