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t <br /> Barth Construction, Inc. <br /> NOTES TO FINANCIAL STATEMENTS <br /> (See Independent Accountants ' Review Report) <br /> September 30, 2011 <br /> NOTE A - SUMMARY OF ACCOUNTING POLICIES (continued) <br /> 7 . Use of Accounting Estimates <br /> The preparation of financial statements in conformity with generally accepted accounting principles requires <br /> management to make estimates and assumptions that affect the reported amounts of assets and liabilities and <br /> disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of <br /> revenue and expenses during the reporting period. Actual results could differ from those estimates. <br /> NOTE B - ORGANIZATION <br /> The business was incorporated and began conducting business in September, 1979, under the laws of the State <br /> of Florida. The Company is engaged principally in construction of commercial buildings and residential <br /> housing. <br /> NOTE C - CONCENTRATIONS OF CREDIT RISK <br /> The Company provides general contracting services for residential and commercial projects, primarily in Indian <br /> River County, Florida. The Company' s receivables are collectible under contractual draw schedule <br /> arrangements, with retained receivables (usually ten percent of billings to date) due at the completion of the <br /> contract. <br /> The Company maintains cash balances at a financial institution in Vero Beach, Florida. Accounts at banks and <br /> savings and loan institutions are insured by the Federal Deposit Insurance Corporation up to $250,000. Cash <br /> accounts at security brokerage institutions are also insured by the Securities Investor Protection Corporation up <br /> to $ 100,000. At September 30, 2011 , the Company had uninsured cash balances totaling $853 ,877. <br /> NOTE D - FAIR VALUE OF MARKETABLE SECURITIES <br /> The Company has a number of marketable securities, none of which are held for trading purposes. <br /> The <br /> Company estimated the fair value of all securities to be $241 ,074, which is $ 151 ,833 less than the cumulative <br /> cost basis of $392, 907 . This difference is carried as an accumulated other comprehensive loss and <br />is not <br /> considered permanent. As of September 30, 2011 , cost and fair value of equity securities are as follows : <br /> Available for sale, at cost $ 392,907 <br /> Gross unrealized gains 44,052 <br /> Gross unrealized losses ( 195q885) <br /> Fair value <br /> NOTE E = CONTRACT RECEIVABLES <br /> Contract receivables at September 30, 2011 : <br /> Billed: <br /> Completed contracts $ 960 <br /> Contracts in progress 3983247 <br /> Retainage 27 .876 <br /> $ 427.083 <br /> - 8 - <br />