First Work Year Budget: Guideline Spring 2024

The following reflects the guideline for your submission:

1.   To be submitted using the Activities/Assignments submission in Brightspace by 11.59pm on the deadline date of Fri Feb 16th.

- it will help me if you include your text narrative in a separate sheet/tab on the same

workbook (create a large cell with text wrap). Remember to include your last name in your excel file name.

2. Assume for purposes of this assignment that you are creating budgeted financial

statements to reflect your first year of work after you complete your degree at Bentley.

The following requirements are necessary for this assignment:

2.1 Prepare a relatively detailed (estimated) budgeted cash flow budget (for your first year of working).

Preferably use the First Yr. Fin Stat template provided under Ch 2 Module – adjust as necessary (can leave income and expense items that you do not use).  If you intend

moving straight into full time graduate studies, or/and staying with parents, assume that you instead entered the job market and obtained your own accommodation). In

other words, assume that you will be funding your own accommodation (sharing the cost with one other could be an option if this is very likely).

Include in a supporting side note the tax computation for the Federal Tax on your cash

flow statement. Use the excel file “Summary Federal Tax Return_Form 1040” under

Module Ch. 3. The tax calculated on the Taxable Income you come up with on this tax return should then be cross referenced by the Federal Tax cell on your Income Statement.

Give thought to how best to allocate a surplus, or fund a deficit, and incorporate into the allocation block at the bottom of the cash flow statement and align such decisions with the balance sheet i.e. show the result on your balance sheet.

2.2 Prepare a personal balance sheet as at the end of that first year.

2.3 Please reflect the reference for the source of supporting information used in compiling   your budgeted statements above. For example, this could be the URL or other reference which supported your estimate for the budget number, such as rent for your particular    location or a brief note on the data sourced. You can utilize the column to the right of the income statement and balance sheet to reflect the references. No reference for numbers that are just your own cost estimates are necessary.

2.4 Set out appropriate ratios that you feel would be useful in the ongoing monitoring of your financial situation. Provide a brief interpretation (not a description of the formula) of your calculated ratio for your planning.

2.5 Write a brief report (approximately the equivalent of half to one page) evaluating the strengths and weaknesses of your planned first year, together with the opportunities or threats it presents for your intermediate and longer-term goals (point form will be acceptable).