Re: Plate is a not-for profit grocery store that busy unused edible food from restaurants and for-profit

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Question:

Re: Plate is a not-for profit grocery store that busy unused edible food from restaurants and for-profit grocery stores and sells the food at below-market prices. It also offers cooking classes for a fee through out the year. Its fiscal year is January 1-December 31. In FY 2017:

1. Re: Plate will begin the year with $21,000 in cash

2. Re: Plate plans to buy 1,000,000 pound of food at $1.25 per pound in cash through the year.

3. RE: Plate expects to sell all of its 1,000,000 pounds of food in inventory it acquires throughout the year, at an average price of $1.65 per pound

4. Re: plate plans to offer three cooking classes per week throughout the year. Each class will have 10 participants, each of whom will pay a $25 fee.

5. Re: plate will pay $10,000 per month in rent, up from $9,000 per month in FY 2016. Rent will be $10,500 per month in FY2018. RE:Plate pays rent one month in advance.

6. Re: plate's total payroll will be $210,000 in salaries, up from $180,000 in FY 2016. In addition to salary, Re: plate's employees are paid benefits valued at 40% of their salaries. The benefits rate will be unchanged from FY 2016. Employees are paid monthly with a 1-month lag.

7. RE: plate will take out a $40,000 loan July 1. The loan will have an annual interest rate of 2%. An interest payment and a principal repayment of $10,000 will be due December 31.

8. RE: Plate will use the loan to purchase a new forklift that will have a useful life of 10 years and a salvage value of $5,000. RE:Plate also owns computer equipment it purchased in 2015 for $50,000; the equipment has no salvage value and a useful life of 5 years.

Prepare an annual operating budget and a semiannual cash budget (showing the first half of the year, the second half of the year, and annual amounts in three side-by-side columns) for Re: Plate for FY2017.