Reference no: EM133239461
On the last day of year 0 we have set up a business to which we have contributed Property, Plant and Equipment (machinery, installations and computer processing equipment) for a value of 10,000 and a deposit in a bank account for a value of 5,000.
Prepare a Social Security Balance Sheet for the monthly periods from December of year 0 to December of year 1, taking into account the following data:
Relevant facts for the Operating budget:
Expected billing: January 2000, February 4000, March 5000, April 6000, May 6400, June 400, July 2000, August 4000, September 3000, October 2000, November 3000 and December 1000.
We expect to collect from our clients promptly within 30 days.
Expected expenses for external services: January 1,000, February 2,000, March 1,800, April 2,000, May 1,800, June 1,800, July 200, August 700, September 1,500, October 2,000, November 2,000 and December 1,000. Of the expenses for external services, in each and every one of the months, 200 are paid within the month itself and the rest of the monthly amount the following month.
To work on a simpler model, we omit VAT on both income and expenses, as well as the rest of taxes.
The planned payroll: As a simplistic hypothesis that facilitates the assumption, everything that is accrued is paid in the same month, and 1000 is accrued each month except in June in which the amount is 2100 and in December in which it is 2000 (months of extraordinary payments or bonuses).
Social Security is paid in the same month of accrual and amounts to 300 monthly.
Relevant facts for the Capital/Fixed Assets budget
The complete depreciation of Property, Plant and Equipment (Amortization) occurs constantly over 4 years (calculate the amount that corresponds to each monthly payment).
In April we will acquire fixed assets for a value of 7,500 and in September for a value of 2,000. In both cases we will pay in cash, since this allows us to purchase at a substantially reduced price, and the amortization period is the same as that of the rest of the fixed assets.