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 |
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.
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