A progress billing includes $258,400 of earned work. Retainage is 7.5%. What net amount should be forecast before other deductions?
Correct Answer
B) $239,020
Subtract retained amount from earned work.
Why This Is the Correct Answer
Subtract retained amount from earned work.
Why the Other Options Are Wrong
Option A: $19,380
$19,380 is below the supported result for cash-flow retainage; it likely uses the wrong base, period, or account bucket.
Option C: $246,772
$246,772 is above the supported result for cash-flow retainage; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $258,400
$258,400 is above the supported result for cash-flow retainage; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Forecasts Cash money test: bucket before math for cash-flow retainage.
Reference Hint
Open-book path: tab Principles and Practices of Commercial Construction, 11th Edition, 2024 to Payment forecasting; retainage; verify the quantity, approval point, notice rule, or field record before answering.
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