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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />II <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />Consul-Tech Enterprises, Inc. and Subsidiaries <br />Notes to Consolidated Financial Statements <br />December 31, 2006 and 2005 <br /> <br />D. Contracts Receivable (continued) <br /> <br />Contracts receivable consist of the following at December 31,2006 and 2005: <br /> <br /> 2006 2005 <br />Billed <br />Completed contracts $ 505,916 $ 236,858 <br />Contracts in progress 7,537,149 . 3,297,799 <br />Retainage 4,793 (7,500) <br />Less intercompany receivables (1,037,839) (788,661) <br /> 7,010,019 2,738,496 <br />Less allowance for doubtful accounts (146,800) (146,800) <br /> $ 6,863,219 $ 2,591,696 <br /> <br />E. Costs and Estimated Earnings on Uncompleted Contracts <br /> <br />Costs, estimated earnings and billings on uncompleted contracts for the current year ended <br />December 31, 2006 are summarized as follows: <br /> <br />Costs incurred on uncompleted contracts <br />Estimated earnings <br /> <br />2006 <br />$ 7,175,782 <br />3,913,082 <br />11,088,864 <br />11,260,787 <br />$ (171,923) <br /> <br />Less billings to date <br /> <br />Included in the accompanying balance sheet under the following captions: <br /> <br />2006 <br /> <br />Costs and estimated earnings in excess of billings <br />on uncompleted contracts <br />Billings in excess of costs and estimated earnings <br />on uncompleted contracts <br /> <br />$ <br /> <br />62,068 <br /> <br />233,991 <br />(171,923) <br /> <br />$ <br /> <br />F. Line of Credit <br /> <br />The Company maintains a revolving line of credit that bears interest of I-month LIBOR plus 2% for <br />borrowings up to $2,500,000, due on demand. The outstanding balance as of December 31, 2006 <br />and 2005 amounted to $2,043,145 and $1,760,000, respectively. The obligation is secured by the <br />assets of the Company, including the carrying value of contracts receivable (Note D). <br /> <br />11 <br />