EXERCISE 18-4 (Continued)

(b)   Construction in Process.......................................      535,000              ($935,000 – $400,000)                    Materials, Cash, Payables, etc..................                           535,000         Accounts Receivable ($900,000 – $300,000)....      600,000                 Billings and Construction in Process........                           600,000         Cash ($810,000 – $270,000)..................................      540,000                 Accounts Receivable.....................................                           540,000         Construction Expenses........................................      535,000         Construction in Process.......................................                           140,000                 Revenue from Long-term Contracts...........                           675,000*         *$1,500,000 X (85% – 40%) (c)   Gross profit recognized in: 2004 2005 2006 Gross profit $ –0– $ –0– $43