New Financial Statement Structure Brings New Success
Our client was a Contractor who suffered a disruption of their net worth and working capital position due to the death of one of the stockholders. They were unable to obtain performance bonds.
Our Shorewest Team completed both job and credit references, which spoke highly of the contractor’s effectiveness. We evaluated the Contractor’s situation and developed a new single compilation financial statement written on a cash basis. We were able to convert the financial statement to a modified accrual/percentage of completion basis. Even with the depleted capital basis, the new CPA statement added back in accounts receivable, accounts payable and the WIP. The new financial statement structure put the Contractor back in a position to obtain performance bonds.