Student Finance (StuFi) is a start-up that aims to use the power of social communities to transform the student loan market. It connects participants through a dedicated lending pool, enabling current students to borrow from a school's alumni community. StuFi's rev- enue model is to take an upfront fee of 40 basis points (0.40%) eachfrom the alumni investor and the student borrower for every loan originated on its platform. StuFi hopes to go public in the near future and is keen to ensure that its financial results are in line with that ambition. StuFi's budgeted and actual results for the third quarter of 2017 are presented below. Page Layout в Insert Formulas Data Review View Home Static Budget Actual Results 1. New loans originated Average amount of loan Variable costs per loan: Professional labor Credit verification 8,200 10,250 $145,000 $162,000 4 $360 (8 hrs at $45 per hour) $475 (9.5 hrs at $50 per hour) $100 $100 Federal documentation fees $125 $120 Courier services 9 Administrative costs (fixed) 10 Technology costs (fixed) $50 $800,000 $1,300,000 $54 $945,000 $1,.415,000
Student Finance (StuFi) is a start-up that aims to use the power of social communities to transform the student loan market. It connects participants through a dedicated lending pool, enabling current students to borrow from a school's alumni community. StuFi's rev- enue model is to take an upfront fee of 40 basis points (0.40%) eachfrom the alumni investor and the student borrower for every loan originated on its platform. StuFi hopes to go public in the near future and is keen to ensure that its financial results are in line with that ambition. StuFi's budgeted and actual results for the third quarter of 2017 are presented below. Page Layout в Insert Formulas Data Review View Home Static Budget Actual Results 1. New loans originated Average amount of loan Variable costs per loan: Professional labor Credit verification 8,200 10,250 $145,000 $162,000 4 $360 (8 hrs at $45 per hour) $475 (9.5 hrs at $50 per hour) $100 $100 Federal documentation fees $125 $120 Courier services 9 Administrative costs (fixed) 10 Technology costs (fixed) $50 $800,000 $1,300,000 $54 $945,000 $1,.415,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Q.Prepare an
Transcribed Image Text:Student Finance (StuFi) is a start-up that aims to use
the power of social communities to transform the student loan market. It connects participants through a
dedicated lending pool, enabling current students to borrow from a school's alumni community. StuFi's rev-
enue model is to take an upfront fee of 40 basis points (0.40%) eachfrom the alumni investor and the student
borrower for every loan originated on its platform.
StuFi hopes to go public in the near future and is keen to ensure that its financial results are in line with
that ambition. StuFi's budgeted and actual results for the third quarter of 2017 are presented below.
Page Layout
в
Insert
Formulas
Data
Review
View
Home
Static Budget
Actual Results
1.
New loans originated
Average amount of loan
Variable costs per loan:
Professional labor
Credit verification
8,200
10,250
$145,000
$162,000
4
$360 (8 hrs at $45 per hour)
$475 (9.5 hrs at $50 per hour)
$100
$100
Federal documentation fees
$125
$120
Courier services
9 Administrative costs (fixed)
10 Technology costs (fixed)
$50
$800,000
$1,300,000
$54
$945,000
$1,.415,000
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