Capital Expenditures Budget On January 1, 2012, the controller of Omicron Inc. is planning capital expenditures for the years 2012-2015. The following interviews helped the controller collect the necessary information for the capital expenditures budget Director or Facilities: A construction contract was signed in late 2071 for the construction of a new factory building at a contract cost of $10,000,000. The construction scheduled to begin in 20Y2 and be completed in 2013. Vice President of Manufacturing: Once the new factory building is finished, we plan to purchase $2.5 million in equipment in late 2073. expect that an additional $200,000 will be needed early in the following year (2014) to test and install the equipment before we can begin production. If sales continue to grow, I expect we'll need to invest another $1,000,000 in equipment in 2015 Chier Operating omcer: We have really been growing lately. I wouldn't be surprised if we need to expand the size of our new factory building in 2075 by at least 35% 1 Fortunately, we expect inflation to have minimal impact on construction costs over the next four years. In addition, I would expect the cost of the expansion to be proportional to the size of the expansion Director of Information Systems We need to upgrade our information systems to wireless network technology. It doesn't make sense to do this until after the new factory building is completed and producing product. During 2014, once the factory is up and running, we should equip the whole facility with wireless technology. I think it would costs $800,000 today to install the technology. However, onces have been dropping by 25% per year, so it should be less expensive at a later date Chief Financial Omcert am excited about our long-term prospects. My only short-term concern is managing our cash flow while we expend the $4,000,000 of construction costs on the portion of the new factory building scheduled to be completed in 2012 Use this interview information to prepare a capital expenditures budget for Omron Inc. for the years 2012-2015. Enter al amounts as positive numbers Omicron Inc. Capital Expenditures Budget For the Four Years Ending December 31, 20Y2-2045 20Y2 20Y3 2014 2045 Building $ Equipment $ Information systems 10 Total $