Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You have been running a construction company out of your home with your spouse helping you keep the books. The company has grown and

 image text in transcribed 

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To create a monthly cash flow budget for both scenarios we will calculate costs based on the information provided Heres a stepbystep approach Operatin... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Deferred Income Taxes

Authors: Bobby Carmichael

2nd Edition

1119724562, 9781119724568

More Books

Students also viewed these Accounting questions

Question

What is the education level of your target public?

Answered: 1 week ago

Question

What advertising media and promotional tactics will you use?

Answered: 1 week ago