Public financial management, Corporate Finance

Assignment Help:

You are planning to open a homeless shelter called Helping Hands Mission Inc. in fiscal year (FY) 2011. You expect to have 60 beds and to operate at full capacity throughout the year. You expect food to cost $25 per person per week and laundry to cost $10 per 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 salary of $20,000. You plan to pay all of the aforementioned costs promptly as they are incurred. 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 the full insurance payment is due on the first day of the year.

The city has agreed to reimburse you for $40 per person per week; you will receive weekly checks from the 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 the year. You are not planning to borrow or invest any funds during the shelter's first year of operations.  

a)  Using the template on the course website, prepare an annual operating budget for FY 2011 on the accrual basis of accounting. 

b)  Prepare a quarterly cash budget for the shelter for FY 2011. (Hint: assume that there are 3 months or 13 weeks in a quarter. Do not try to convert weeks to months or vice versa!)

c)  Write a few sentences explaining which factor(s) are driving the difference between the shelter's expected  profit/loss  on the operating budget and annual  ending cash balance on the cash budget.

d)  Write a few sentences explaining some ways in which you might want to revise your plans for fiscal year 2011 in light of the shelter's expected profit/loss and ending cash balance.


Related Discussions:- Public financial management

Corporate finance assignment, From a Corporate Finance and Governance persp...

From a Corporate Finance and Governance perspective, the assignment is about answering three fundamental questions: 1. How much value does the organisation create/destroy today?

Financial, Initial investment outlay of $30 million, consisting of $25 mill...

Initial investment outlay of $30 million, consisting of $25 million for equipment and $5 million for net working capital (NWC) (plastic substrate and ink inventory); NWC recoverabl

Describe briefly how electronic money works, Question: (a) Describe bri...

Question: (a) Describe briefly how electronic money works. (b) Give two benefits of e-money to each of the following: (i) consumers, and (ii) business. (c) Outline

Assignment for corporate finance, Assignment Part 1   Sha...

Assignment Part 1   Shareholder Value Provide (a) one page write-up of the company; (b) Present its significant performance indicators such as P/BV; an

Ethical implications behind corporate governance, problem 1 (a) (i) De...

problem 1 (a) (i) Define Corporate Governance. (ii) Show the ethical implications behind Corporate Governance. (b) (i) Why do organizations engage in social accounting?

What is the repo rate, Problem: (a) What are the main functions of the...

Problem: (a) What are the main functions of the Bank of Mauritius? Give short comments on each function. (b) The Repo rate is an instrument of monetary policy for the Bank

Calculate the pv and npv, Suppose you take out a loan of $10,000, repayable...

Suppose you take out a loan of $10,000, repayable by five equal annual instalments. The interest rate is 10% per year. (a) How much do you need to repay per year to the nearest ce

Implications of markets for international banking, i) Differentiate between...

i) Differentiate between a revolver loan and a rollover and give an explanation of the syndicated loan in the Eurocurrency market? ii) Can onshore banking and offshore co exist

Market efficiency, differentiate between allocative efficiency and pricing ...

differentiate between allocative efficiency and pricing efficiency

Stock Valuation, How much of your estimate of the value of Reeby’s stock co...

How much of your estimate of the value of Reeby’s stock comes from the present value of growth opportunities? Reeby''s mini case study.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd