70.2K

Verified Solution

Link Copied!

Hi I have a question. I have to create a budget for a company and got the 2019 entire year and half of 2020. I need help figuring out which formulas and or how to set up the budget. explanations will be apreciated since I really wamt to learn how to set a budget when I get this information.

2019 Full year 2020 YTD (8 months) Income 150 000 Duct Work Mold Work Water Jobs 78.000 201 240 387.000 75.000 612,000 39.000 318,240 Total Income 2.558 394.243.14 29,475.84 426,276,90 185,723.02 55.592 37.56663 19,378 83 112,517.46 205.722.54 5,888 1,100 679.95 9.077.75 4,1549 13,912.6 2405 1,801.13 581 31.54 17 Cost of Goods Sold Direct Cost - Labor Direct Cost - Subcontractors Direct Cost - Supplies & Materials Total Cost of Goods Sold Gross Profit Expenses Advertising & Promotional Amortization Auto & truck expenses Fuel Repair & Maintenance Total Auto & truck expenses Bank Charges Computer Software Continuing Education Disposal Fees Dues & Subscriptions Insurance Insurance Liability Insurance Auto & WIC Interest Expense Lab Fees Legal & Professional Fees Meals Merchant Account Fees QuickBooks Payments Fees Total Merchant Account Fees Miscellaneous Office Supplies Payroll Expenses Office Taxes Office Payroll Total Payroll Expenses Payroll Processing Fee Purchases Rent Expense Royalty Payment Small Equipment Purchase Taxes & Licenses Technology Fee Telephone Travel Uncategorized Expense Total Expenses Net Operating Income 8.380.76 2,852.90 1.628 4,079.04 4.223.91 8.19147 297.74 447225 4,472.25 326.47 1,604 96 7,199 39 0 0 6,017.71 5.118.71 11,136.42 1,144.9 1.730.46 303 200 262.16 4.30938 3,810.13 1.628 7,915.49 3,489.69 5.151.75 1.128.25 0 3,191.83 3.764.28 0 1,380.55 0 3,952.5 52.700 56.652.5 8.54 0 2.871 29.278.08 0 1.109.98 1,638.23 2.020.59 0 0 147.560.32 58,16222 6,375 85.000 91,375 521.74 1.204 7452 3,093.7 973.60 635.43 600 37 1.966.96 4,828.86 0 163,584.4 22.138.62 1 st Month 2nd Month 3rd Month 4th Month 5th Month Gross Sales or Receipts Less: Cost of Goods Sold - Labor Less: Cost of Goods Sold - Materials Gross Profit Less Expenses Accounting & Legal Advertising Bad Debts Insurance Rent Repairs & Maintenance Salaries & Wages (to others) Royalties Supplies Taxes & Licenses Other Expenses Total Expenses Net Profit 6th Month 7th Month 8th Month 9th Month 10th Month 11th Month 12th Month Total Year 1 % R 9th Month 10th Month 11th Month 12th Month Total Year 1 % of Revenue Total Year 2 % of Revenue Please note, while these numbers and factors are based on an actual business, the data has been changed. The information is to be used for ACC202 exercise purposes only. Important Variables to consider: * 2019 Water jobs included a hurricane flooding 2020 values include the impact driven by COVID shutdown * Contractually, Royalties should be 10% of Revenues The franchise recomends that marketing spend be no less than 3% of sales Average Sales for a multi-territory franchise are $600k, median sales $550k. -Top territory was $10M+ * A single terriotry is 50,000 households. * Gross Margins for the industry are 65-70%, technicians perfoming the work are counted in the COGS #

Answer & Explanation Solved by verified expert

See Answer