10. 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 cost information in Table 9-10 to prepare a cash flow budget for one year for continuing to operate out of your home and moving to a new office: Table 9-1 Cost Information for Problem 100 Item Cost Estimator's Wages $19/hr for 20 hrs/week $15/hr for 40 hrs/week Office Manager's Wages Social Security 6.2% of wages to $128,700 Medicare 1.45% of wages FUTA 0.6% to $7,000 of wages per employee SUTA 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% of wages Health Insurance $525/month per employee Vacation/Sick/Holidays 10 days per year Rent $21 per square foot per year Utilities $0.45 per square foot per month The budget should include the following budget categories: The budget should include the following budget categories: Advertising Bad Debts Bank Fees Car and Truck Expenses Charitable Contributions Computer and Office Furniture Depreciation Dues and Memberships Employee Wages and Salaries Employee Benefits Employee Retirement Employee Recruiting Employee Training Employee Taxes Entertainment Insurance Interest Expense Janitorial and Cleaning Legal and Professional Services Meals Office Supplies Office Purchases Office Rent Office Utilities Postage and Delivery Promotion Publications and Subscriptions Repairs and Maintenance Taxes and Licenses Telephone Travel Unallocated Labor Unallocated Materials Miscellaneous A budget of o for a category is acceptable. Present your budget in the following format: Budget ($yr) Item At Home New Office Justification Budget ($/yr) Item At Home New Office Justification Advertising Total