Part 1 - What is the Total 2011 Capital Cash Flow projected for 2011 and 2012?
Part 2 - Describe the breakdown for the 2011 Budgeted Capital Expenditures? Which Quarter has the largest anticipated expenditures? Do the same for 2012.
The 2011 expenditures were budgeted at $24,316,173. This resulted from the totalling of the four quarters expenditures. In describing each quarter’s performance, Q1 expenditure stood at $1,212,203. Q2 was $4,272,374, Q3 stood at $7,194,630, and lastly Q4 stood at $11,635,122. During transmission 2 expenditure, Q4 had the highest expenditure in Trans 2, which saw it top with the highest expenditures among the other quarters. Q4 took a whole 58% in the Transmission 2 as compared to the total of all quarters of the projects on Trans 2. The best quarter that gave the least expenditure was Q1 standing at $120,828.
For the year 2012, expenditures were budgeted at $41,819,880 which was higher than the figure budgeted for the year 2011. This figure represented a 71.98% increase or a difference of $17,503,551. This may be due to the increase in the cost of holding the projects. The transit operating costs of the projects in Trans 2 increased to $31,039,765 from $11,611,152 of the previous year. The percentage increase was 42.65%. Other items that lead to the overall increase were the projects in station 1 which also increase by 23.79%. The highest budgeted quarter was quarter 2(Q2) where the expenditure was at $13,021,030.
Part 3 - What is the total IDC (interest During Construction) budgeted for 2011?
Part 4 - Which Project in the budget is not 100% Capitalized? How much is Capital and why would that be?
Generation station 1 and project 10 was only 27% Capitalized. The reason could be due to the larger value of the IDC which stood at $ 112,134. This only left the XYZ cost to stand at $ 942, 760. Another reason could be that, project 10 will be completed in 06/01/2015.
Part 5 - In the summary they mention a "prior year’s carryover" of $413.8 million. What do you think is meant by this?
In normal cases, a taxpayer may not take the net losses of more than $3,000 as they try to figure the single tax year taxable. There exists a deduction limit which is the allowable loss. The unused losses which in our case is $413.8 million, is what was carried over to the following year so that it can be completely used up.
Works Cited
Mississauga.com Editors. "2013-16 City Business Plan." na February 2013. Mississauga.com. 5 April 2014 <www.mississauga.ca/file/COM/2013_B.City_Business_Plan.pdf>.
Trans-Link. "2012 BUSINESS PLAN, OPERATING AND CAPITAL BUDGET SUMMARY." na February 2012. Translink. 4 April 2014 <http://www.translink.ca/~/media/Documents/about_translink/governance_and_board/board_minutes_and_reports/2012/february/2012%20Business%20Plan%20Operating%20and%20Capital%20Budget%20Summary.ashx>.