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

Note: Please use excel and seperate spreadsheets for the following:

1st SPREADSHEET- Salaries Budget
2nd Spreadsheet- Salaries Burden Budget.
3rd Spreadsheet- General Overhead Budget
4th Spreadsheet- Insurance Budget.

And for the calculation of WCP, use the rate in Worksafe BC website.