You have been running a construction company out of your home with your spouse helping you keep the books. The company has grown and has begun to take up too much of your and your spouse's time. The decision has been made to hire a part-time estimator to help you with the bidding and a full-time office manager. The office manager's duties will include accounting, receptionist, and secretarial duties. By hiring the new personnel you will need to move the company's operations out of your home and into an office. Use the following cost information to prepare a cash flow budget for one year for continuing to operate out of your home and moving to a new office:

Item	Cost
Estimator’s Wages	$ 15/hr for 20 hrs/week
Office Manager’s	Wages $ 12/hr for 40 hrs/week
Social Security	6.2% of wages to $ 106,800
Medicare	1.45% of wages
FUTA	2.0% to $ 12,000 of wages per employee
Workers’ Comp	$ 1.25 per $ 100 of wages
General Liability	0.67% of wages
401 (k)	50% match up to 6% wages
Health Insurance	$150/month per employee
Vacation/Sick/Holidays	10 days per year
Rent	$ 12 per square foot per year
Utilities	$ 0.25 per square foot per month

The budget should include the following budget categories:

Advertising

Bad Debts

Bank Fees

Car and Truck Expenses

Charitable Contributions

Computer and Office Furniture

Depreciation

Dues and Memberships

Employee wages and Salaries

Employee Benefits

Employee Retirement

Employee Recruiting

Employee Training

Employee Taxes

Insurance

Interest Expense

Janitorial and Cleaning

Legal and Professional Services

Meals and Entertainment

Office Supplies

Office Purchases

Office Rent

Office Utilities

Postage & Delivery

Promotion

Publications and Subscriptions

Repairs and Maintenance

Taxes and Licenses

Telephone

Travel

Unallocated Labor

Unallocated Materials

Miscellaneous

A budget of '0" for a category is acceptable. Present your budget in the following format:

Budget ($/yr)
Item	At home	New office	justification
Advertising
Total