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Financial Management HomeworkAssignment #11.
You are planning to open a homeless shelter called Haven House in fiscal year(FY) 2016. You expect to have 60 beds and to operate at full capacity throughoutthe year. You expect food to cost $25 per person per week and laundry to cost $10per person per week. You plan to pay one full-time staffer an annual salary of$40,000 plus $10,000 in benefits, and a second part-time staffer an annual salaryof $20,000. You plan to pay all of the aforementioned costs promptly as they areincurred. You expect to pay $5,000 per month to rent a furnished space and$2,000 per year for insurance; rent is due on the first day of each month and thefull insurance payment is due on the first day of the year. The city has agreed toreimburse you for $40 per person per week; you will receive weekly checks fromthe city with a four-week lag (i.e. four weeks after service has been delivered).You also expect to receive $80,000 in contributions, spread evenly throughout theyear. You are not planning to borrow or invest any funds during the shelter?s firstyear of operations.a) Using the template on the course website, prepare an annual operating budgetfor FY 2016 on the accrual basis of accounting.b) Prepare a quarterly cash budget for the shelter for FY 2016. (Hint: assume thatthere are 3 months or 13 weeks in a quarter. Do not try to convert weeks tomonths or vice versa!)c) Write a few sentences explaining which factor(s) are driving the differencebetween the shelter?s expected profit/loss on the operating budget and annualending cash balance on the cash budget.d) Write a few sentences explaining some ways in which you might want to reviseyour plans for fiscal year 2016 in light of the shelter?s expected profit/loss andending cash balance.
Annual Operating Budget
Revenues and Support
Salaries and benefits
Quarterly Cash Budget
Total cash receipts
Salaries and benefits
Total cash payments
Ending Cash Balance
Please TYPE your answers to the remaining questions in the spaces provided below. Handwritten answers will not receive credit.
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Paper#9209889 | Written in 27-Jul-2016Price : $22