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You have been running a construction company out of your home with your spouse helping you keep the books. The company has grown and
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 an estimator, accountant, and an office manager. The office manager's duties will include 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. Employees will be 5 (you, your spouse, estimator, accountant, and office manager), consider 52 weeks per year (four and one- third weeks per month). Use the cost information in the table below to prepare a monthly cash flow budget for one year for continuing to operate out of your home and moving to a new office which is 1000 SF. Also, find the monthly total cost, and the annual cost for each item. Show the costs for each item and at same sequence as shown in the table, do not combine two items together, and don't change the sequence. Item Advertising salary Social Security Medicare FUTA SUTA General Liability 401(k) Health Insurance Rent Utilities Office Supplies Janitorial and Cleaning Bank fees Costs $250/month $4,200/month/employee 6.2% of wages to $128,700 1.45% of wages 0.6% to $7,000 of wages per employee 2.0% to $12,000 of wages per employee 0.67% of wages 3% of wages $450/month per employee $20 per square foot per year $0.5 per square foot per month $60/month $100/week $35/month
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