Resource: Financial Statements for Manpower Group.

Analyze the following scenario: River County is planning several capital acquisitions for the coming year.  These include the purchase of two new garbage trucks at $150,000 each, one new bulldozer at $240,000, three new riding lawn mowers at $16,000 each, and construction of an activity center in the part for $650,000.  The expected lifetime of the various capital items is 10 years for the garbage trucks, 8 years for the bulldozer, 5 years for the lawn mowers, and 40 years for the activity center.  Prepare a capital budget for the items to be acquired, showing their estimated lifetimes, and their per unit and total costs.

 

Clearly label the calculations for the required components of the capital budget using Excel.  Use formulas to show the interrelationships and format the cells to insert a comma if there is more than three numbers and round to the nearest whole number.  Explain your budget to the county council.

 

Submit to your instructor your two-to-three page Word document (not including the title and reference pages) and your Excel worksheet. Your paper should be formatted according to APA style as outlined in the approved APA style guide, and you must cite at least two scholarly sources in addition to the textbook

Solution

Please see below and the attached Excel file for your tutorial. Please remember that this is a tutorial which was written to help you write the final two to three page word document report you have to pass for your class.

Whenever presenting a budget and the individual items comprising that budget, it is always important for you to justify the necessity of each of these items and as a whole.

For example, the county council may ask why River County needs two new garbage truck and you can explain by saying: 1. The county's household population has grown and the existing garbage trucks can no longer handle the load for the entire county 2. The existing garbage trucks are so old pieces are falling off from them whenever they go around the county picking up garbage 3. It is the policy of the county to replace its trucks every 10 years and this is the 10th year the last sets of trucks were purchased

Now explain why the county might need the county should invest in the bulldozer, and the lawn mowers.

Also talk about the expected lives

Use 2-3 sources