Due before 11:55 pm Computer focused principles

Veronica Almodovar

Analysis paper for the budget

Project Overview

Rasmussen College

Company Overview

The Urithi Real estate is a leader in asset management and property investment. Founded in 2012 by Keshi Jones, its multi-office and boutique real estate company that works towards matching potential investors with the best property matching their needs and taste. Keshi has over ten years’ experience in real estate and management experience, which has been matched with good investment skills which have enabled the company to complete about 3.4 billion dollars projects in the past 10 years. With investor and private capital, the company is looking at doing more urban real estate projects. Urithi provides the best real estate traditional methods of property management, selling and buying, rent and asset management but moving towards more modern ways of doing business. The company profile currently includes one to three houses for family use, mixed use buildings, luxury homes and apartments. Our goal is to be a globally diversified property and asset managers.

Summary of all Transactions Completed.

The purchase of a condo at the cost of $ 18000 and a retouch of the same at the cost of $ 7000, thus the total for the purchase of the condo would be termed as $25000. After looking at the financial positon of the company, we opted for the credit line to purchase the condo because it was at zero percent financing and the repayment mode was also favorable considering the fact that the credit has a repayment period of 15 months. The cost of repayment will be met by including the costs in the rent charged, also being that the project will be through within one month it will provide time for occupancy and thus the credit will be easily repaid.

The house was also sold at a profit of $ 20000 to a willing buyer. The decision to sell the house was reached because the time was right and also consumer demands. The Condo would have not had a good profit margin as the house because the demand that was upcoming was for the house. The marketing strategies that have been adopted by our company are quite good and have assisted in making us experience profit. The profit thus will be useful in ensuring that the company’s financial improve by recording higher profits this year and increasing the gross profit margin.

Summary of the financials generated

The income statement reflected the latest acquisition of a condo. It was acquired through credit and thus the liabilities increase. The rental income also increased due to the new rent from the condo. The sale of the house increased the income of the company. Due to this sale there was a spike in profit reported by a considerable percentage.

The balance sheet has been balanced out. The transaction of buying and selling has been reflected. We also have seen a rise in the liabilities because of the credit that was used to acquire the condo. But there is no interest expense on the same because the credit was zero percent financing.

Overview, justification of the budget and how it was forecast.

The budget was much on the lower side. The economy has not been doing well and thus we as a company decided to factor in that. The real estate sector is usually affected easily by the economy and thus the factoring in. The expenses were majorly forecast using last year’s financials but the margins were a bit higher while trying to incorporate the need for growth and profitability in the company. The income was also forecasted using considerations of the economy and last years budget.

Decisions made and why they were made.

The first decision was to purchase the condo using the credit line of financing. This was done because it was an offer at zero percent financing. This would allow the company to finance the purchase at the cost of only repaying the loan. The decision of selling the house was also done because of the consumer demand and also the profitability.

Conclusion and summary

The decisions that were made were to the benefit the company. The company is thus on a stable position looking at the financials. The budget also reflects that the company is not running under the budget but majorly over the budget, this is an indications stability and profitability. Despite the fears that the economy will not be doing the company has surpassed all this to report good figures. The business owners are strategic considering how the business is doing as at now shown by the financials.