Develop an annual operating budget

Assignment Help Finance Basics

Reference no: EM132041494

Question: You are planning to open a small shelter for homeless men in the basement of your church. The governing board has promised you the funds needed to start up the shelter if you can negotiate a reimbursement rate from the city that covers your operating expenses. You expect that you will be able to house 9 men each night, and the city assures you that there will be no shortage of homeless men at any time during the year. You will have to pay one full-time staff person $37,000 a year, and hire a second part-time staffer for $15,000 a year. You will have laundry and food costs of $35 per man per week, and the church will have to pay an additional $2,600 a year in insurance to cover the activities of the shelter. The City will pay you $180 per homeless man per week, and payments will come 2 months after service has been provided. All salaries and food costs are paid when service is provided. The shelter will not have to pay its share of the insurance costs until the last month of the year. (Remember that 9 a night, means that only 9 will be there for a week.) Develop an annual operating budget using accrual accounting for the shelter in order to show its expected profit or loss. [NOTE: Assume that there are 52 weeks in a year]

Reference no: EM132041494

Questions Cloud

What should firms do to cope with these differences : What should firms do to cope with these differences? How do the differences relate to ethical practices?

How can you maintain a current knowledge of threats : What steps would you recommend to guard against a reoccurrence? How can you maintain a current knowledge of threats?

How does the mirr avoid the irr shortcomings : What are the main differences between the NPV method and the IRR? Assumptions on reinvestment and anything else.

Identifying the control limits and drivers : Analyze these data using a control chart that would provide for a 95% confidence interval, identifying the control limits and drivers

Develop an annual operating budget : You are planning to open a small shelter for homeless men in the basement of your church. The governing board has promised you the funds needed to start up.

Describe the counterargument : In three paragraphs describe three (3) arguments that go against your position regarding the Electoral College. This is called addressing counterarguments.

Find withdraw amount each month from your account : You are planning to save for retirement over the next 30 years. To do this, you will invest $700 a month in a stock account and $300 a month in a bond account.

What are four pillars of a safety management system : What are four pillars of a safety management system and how do they relate to each other?

Good recommendations for best practices and strategies : What would be good recommendations for best practices and strategies to guide decision making for public sector or nonprofit organization?

User Account

All Pages