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Question # 1 Using the given information, you are asked to develop the overall company's caslh flow analysis starting January 2019 until the end of 2021. The company will be involved in two projects as illustrated in the following section. In addition, the General Overheads information of the company is provided. You are also asked to (1) Develop a separate cash flow for each project; (2) Develop a combined cash flow for the company over the period of January 2019 until the end of 2021 including the two projects and general overheads; (3) Determine the maximum overdraft and total interest costs; (4) Plot the total costs, total payments, and overdraft; (5) Provide a discussion of the causes of the overdraft and provide mitigation methodologies to deal with them; and (6) Implement at least one of the mitigation methods on the developed cash flow of the company and discuss the achieved improvements. Project # 1: This project started on February 1st, 2019. The associated costs, durations, and schedule are illustrated below. Activity costs are evenly distributed over the duration. The following information is related to this specific project. 1. The retention is five percent (5%) by both client and contractor. The retention will be deducted from the first three (3) payments. The total retained amount will be paid to Contractor with hislher last Progress Payment. The contractual relation between the general contractor and the subcontractors is back to back. 2. Markup is eight percent (8%) 3. The interest rate is one and a half percent (1.5%) per month. 4. There are four (4) weeks in a month. 5, The Monthly project indirect cost is 2.5% of the monthly direct cost. 6. Activities A, D, F, K, and L are subcontracted. 7. An advanced payment equivalent to 18% of the project total value is to be paid to the General Contractor against 18% deduction from each progress payment. 8. The payment is received one month after billing. Month Total Activity Cost $ Activity 1|2|3|4|516171819|10|11 | 12 | 13| 14|15|16 60,000.00 40,000.00 120,000.00 12,000.00 25,200.00 40,000.00 4,000.00 5,850.00 6,000.00 10,000 18,000.00 80,000.00 Project # 2: This project will start on May 1st,2019. The associated costs, durations, and schedule are illustrated below. The following information is related to this specific project. 1. An advanced payment of 20% of the total Contract value is paid by the Client against 20% deduction from monthly Progress Payments. 2. The retention is ten percent (10%) by dient. The retention is only applied on the first (8) Progress Payments. The total retained amount will be paid to Contractor with hislher last Progress Payment 3. Markup is nine percent (9%). 4. The interest rate is two percent (2%) per month. 5. There are four (4) weeks in a month. 6. The project indirect costs are estimated to be one thousand and three hundred and fifty US dollars ($1,350) per week 7. The materials' cost for activities E, F, G, and K represent 60% of the activities' total cost. The materials for these activities will be delivered to the working site a month ahead of their use according to given schedule. The contractual agreements with the suppliers state that 25% of the cost to be paid 1 month before delivery, 50% of the cost to be paid on delivery, and 25% to be paid 1 month after delivery. 8. The payment is received one month after billing. 9. Weekly costs of each activity are as follows. sthib wActivity Duration Activity Cost ($)/Week (weeks) $6,500.00 $5,000.00 $2,650.00 $500.00 $3,000.00 $1,540.00 $1,450.00 $2,540.00 $750.00 $6,980.00 3,450.00 1,900.00 10 Month 4 | 5 | 6| 7 | 8 | 101 1 12113 14|15|16|17|18|19120|21 |22|23|24|20127|28|29|30|31132|33|34 10 12 13 35 |36 |37 |38 |39 |40 |41 |42 |43 |44 |45 |46 |448 |45 |sol5152 General Overheads: The company employs 12 workers in headquarter as follows . A General Manager paid a monthly salary of $ 8,500. He/she is given a cash allowance of $500 per month. An Assistant Manager paid a monthly salary of $ 6,300. He/she is givena cash allowance of $200 per month. 3 estimators each paid a monthly salary of $ 4,500 A drafter paid a monthly salary of $2,500 A scheduler paid a monthly salary of $ 4,000 2 secretaries each paid an hourty rate of $12.00 per hour. Each secretary s anticipated to work for 30 hours per week when the company is not involved with any projects. Otherwise, each secretary is anticipated to work for 45 hours a week. An Accountant paid an hourly rate of $25.00 per hour. An accountant is anticipated to work for 40 hours per week when the company is not involved with any projects. Otherwise, he/she is anticipated to work for 50 hours a week A janitor paid an hourty rate of $10.00 per hour. He/she is anticipated to work for 15 hours per week. All of hourty employees are paid 52 weeks per year. . Time and half must be paid to hourty employees for work over 40 hours per week . The company pays $20 per month per employee for health insurance . The company deposits 2.5% of the monthly amount paid to all employees except the janitor towards employees' 401(K). The Social Security is paid at the rate of 6.2% for the first S132900 of the employees' salaries The current Medicare rate is 1.45%. The company FUTA rate is 0.8% on the first $7,000 of wage per employee. The company SUTA rate is 2.0% on the first $15,000 of wage per employee. The company's general liability insurance is estimated to be $2,500 per month. * * . Question # 1 Using the given information, you are asked to develop the overall company's caslh flow analysis starting January 2019 until the end of 2021. The company will be involved in two projects as illustrated in the following section. In addition, the General Overheads information of the company is provided. You are also asked to (1) Develop a separate cash flow for each project; (2) Develop a combined cash flow for the company over the period of January 2019 until the end of 2021 including the two projects and general overheads; (3) Determine the maximum overdraft and total interest costs; (4) Plot the total costs, total payments, and overdraft; (5) Provide a discussion of the causes of the overdraft and provide mitigation methodologies to deal with them; and (6) Implement at least one of the mitigation methods on the developed cash flow of the company and discuss the achieved improvements. Project # 1: This project started on February 1st, 2019. The associated costs, durations, and schedule are illustrated below. Activity costs are evenly distributed over the duration. The following information is related to this specific project. 1. The retention is five percent (5%) by both client and contractor. The retention will be deducted from the first three (3) payments. The total retained amount will be paid to Contractor with hislher last Progress Payment. The contractual relation between the general contractor and the subcontractors is back to back. 2. Markup is eight percent (8%) 3. The interest rate is one and a half percent (1.5%) per month. 4. There are four (4) weeks in a month. 5, The Monthly project indirect cost is 2.5% of the monthly direct cost. 6. Activities A, D, F, K, and L are subcontracted. 7. An advanced payment equivalent to 18% of the project total value is to be paid to the General Contractor against 18% deduction from each progress payment. 8. The payment is received one month after billing. Month Total Activity Cost $ Activity 1|2|3|4|516171819|10|11 | 12 | 13| 14|15|16 60,000.00 40,000.00 120,000.00 12,000.00 25,200.00 40,000.00 4,000.00 5,850.00 6,000.00 10,000 18,000.00 80,000.00 Project # 2: This project will start on May 1st,2019. The associated costs, durations, and schedule are illustrated below. The following information is related to this specific project. 1. An advanced payment of 20% of the total Contract value is paid by the Client against 20% deduction from monthly Progress Payments. 2. The retention is ten percent (10%) by dient. The retention is only applied on the first (8) Progress Payments. The total retained amount will be paid to Contractor with hislher last Progress Payment 3. Markup is nine percent (9%). 4. The interest rate is two percent (2%) per month. 5. There are four (4) weeks in a month. 6. The project indirect costs are estimated to be one thousand and three hundred and fifty US dollars ($1,350) per week 7. The materials' cost for activities E, F, G, and K represent 60% of the activities' total cost. The materials for these activities will be delivered to the working site a month ahead of their use according to given schedule. The contractual agreements with the suppliers state that 25% of the cost to be paid 1 month before delivery, 50% of the cost to be paid on delivery, and 25% to be paid 1 month after delivery. 8. The payment is received one month after billing. 9. Weekly costs of each activity are as follows. sthib wActivity Duration Activity Cost ($)/Week (weeks) $6,500.00 $5,000.00 $2,650.00 $500.00 $3,000.00 $1,540.00 $1,450.00 $2,540.00 $750.00 $6,980.00 3,450.00 1,900.00 10 Month 4 | 5 | 6| 7 | 8 | 101 1 12113 14|15|16|17|18|19120|21 |22|23|24|20127|28|29|30|31132|33|34 10 12 13 35 |36 |37 |38 |39 |40 |41 |42 |43 |44 |45 |46 |448 |45 |sol5152 General Overheads: The company employs 12 workers in headquarter as follows . A General Manager paid a monthly salary of $ 8,500. He/she is given a cash allowance of $500 per month. An Assistant Manager paid a monthly salary of $ 6,300. He/she is givena cash allowance of $200 per month. 3 estimators each paid a monthly salary of $ 4,500 A drafter paid a monthly salary of $2,500 A scheduler paid a monthly salary of $ 4,000 2 secretaries each paid an hourty rate of $12.00 per hour. Each secretary s anticipated to work for 30 hours per week when the company is not involved with any projects. Otherwise, each secretary is anticipated to work for 45 hours a week. An Accountant paid an hourly rate of $25.00 per hour. An accountant is anticipated to work for 40 hours per week when the company is not involved with any projects. Otherwise, he/she is anticipated to work for 50 hours a week A janitor paid an hourty rate of $10.00 per hour. He/she is anticipated to work for 15 hours per week. All of hourty employees are paid 52 weeks per year. . Time and half must be paid to hourty employees for work over 40 hours per week . The company pays $20 per month per employee for health insurance . The company deposits 2.5% of the monthly amount paid to all employees except the janitor towards employees' 401(K). The Social Security is paid at the rate of 6.2% for the first S132900 of the employees' salaries The current Medicare rate is 1.45%. The company FUTA rate is 0.8% on the first $7,000 of wage per employee. The company SUTA rate is 2.0% on the first $15,000 of wage per employee. The company's general liability insurance is estimated to be $2,500 per month. * *

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