Reference no: EM133550112
Financial Management and Budget Planning
Assignment - Managing Costs
1. Use the cost information provided to prepare a cash-budget for a construction company for one year of operation.
2. Calculate in a separate spreadsheet the employee salaries' budget of the company
» The company employs 3 people:
1. Owner is paid $15K/month
2. The site supervisor is paid $7K/month
3. The office coordinator is paid $55/hour working average of 45 hours/week
» Calculate and include all the legal payroll burden as per BC regulation (EI and CPP). Use WorkSafe cost $4,500/ month. Ignore other additional benefits
» Sales budget is 0.2% of revenue budget
» The monthly insurance budget is calculated as:
o 0.03% of revenues
o 0.07% wages for hourly employees
o 0.06% wages for salaried employees for general liability insurance
» The monthly budget for office utilities includes
o Internet $200/month
o Telephone $90/month
o Hydro $150/month
o Cellphones $850/month
» The rent of the office is $7K/month
» Bank fees are $320/month
» Meals and coffee $1,740/month
» The expense for cleaning and janitorial is $3,600/month
» Vehicle expenses are $4,600/month
» Computer expenses $1,000/month
» Legal services $500/month
» Miscellaneous expenses $4,700/month
Month
|
Revenue
|
January
|
$2,500,500
|
February
|
$1,600,400
|
March
|
$7,830,000
|
April
|
$2,500,000
|
May
|
$4,700,000
|
June
|
$6,300,500
|
July
|
$5,460,000
|
August
|
$3,525,000
|
September
|
$7,600,200
|
October
|
$8,650,000
|
November
|
$4,300,000
|
December
|
$2,525,000
|
|
|
Total
|
$60,387,213
|