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Participants examine the events that generate balances in two special accounts - cost and profits in excess of billings and billings in excess of cost and profits. In addition, Participants explore the role of the contract status report and the manner in which the report supports and ties back to the accrual financial statements. Further, they review the computation of numerous critical amounts recorded on the contract status report for both complete and incomplete contracts, such as a) earned revenue, b) actual cost-to-date, c) total cost anticipated, d) over / underbillings, e) percent complete, f) gross profit percent, and g) gross profit amount.
Participants explore the use of customary performance ratios, complemented by messages from the Uniform Credit Analysis (UCA) cash flow statement, to assess borrower risk and shifts in a borrower's risk profile. In addition, they examine and assess information in year-end and interim financial statements and contract status, or work in progress, reports to identify trends and developments that signal likely future financial and cash flow results for a borrower.