Question

1 Approved Answer

Posted on Jul 22, 2024

help begin{tabular}{|c|c|c|c|c|c|} hline begin{tabular}{l} Exniort 1 Sunshine Day Care Center end{tabular} & & & & & hline multicolumn{6}{|l|}{ Budget, 2020-21 } hline

help

\begin{tabular}{|c|c|c|c|c|c|} \hline \begin{tabular}{l} Exniort 1 \\ Sunshine Day Care Center \end{tabular} & & & & & \\ \hline \multicolumn{6}{|l|}{ Budget, 2020-21 } \\ \hline & & & & & \\ \hline & Budget & Budget & Budget & Budget & Budget \\ \hline & Q1 & Q2 & Q3 & Q4 & Year \\ \hline Average FTEs & 31 & 39 & 46 & 45 & 40.25 \\ \hline Revenue & 77,500 & 98,397 & 116,058 & 113,535 & 405,490 \\ \hline \multicolumn{6}{|l|}{ Expenses: } \\ \hline Advertising/Promotion & 375 & 375 & 375 & 375 & 1,500 \\ \hline Appliances & 0 & 0 & 0 & 500 & 500 \\ \hline Bad Debt & 79 & 101 & 119 & 126 & 425 \\ \hline Head-Quarters Assessments & 16,425 & 16,425 & 16,425 & 16,425 & 65,700 \\ \hline Depreciation & 534 & 534 & 534 & 534 & 0,136 \\ \hline Dues \& Subscriptions & 0 & 0 & 0 & 0 & 0 \\ \hline Food \& Catering & 1,098 & 1,405 & 1,664 & 1,772 & 5,939 \\ \hline License \& Permits & 0 & 650 & 100 & 0 & 750 \\ \hline Insurance & 1,140 & 1,140 & 1,140 & 1,140 & 4,560 \\ \hline Interest & 0 & 0 & 0 & 0 & 0 \\ \hline Maintenance \& Repairs & 3,750 & 3,750 & 3,750 & 3,750 & 15,000 \\ \hline Office Supplies & 300 & 300 & 300 & 300 & 1,200 \\ \hline Personnel & 31,433 & 45,072 & 46,245 & 55,405 & 178,155 \\ \hline Postage \& Deliveries & 0 & 0 & 0 & 0 & 0 \\ \hline Professional Fees & 0 & 0 & 0 & 0 & 0 \\ \hline Property Tax & 2,745 & 2,745 & 2,745 & 2,745 & 10,980 \\ \hline Rent & 14,664 & 14,664 & 14,664 & 14,664 & 58,656 \\ \hline School Supplies & 600 & 600 & 600 & 600 & 2,400 \\ \hline Taxes & 1,650 & 1,650 & 1,650 & 1,650 & 6,600 \\ \hline Telephone & 1,275 & 1,275 & 1,275 & 1,275 & 5,100 \\ \hline Training & 0 & 300 & 200 & 0 & 500 \\ \hline Travel & 0 & 0 & 0 & 0 & 0 \\ \hline Utilities & 3,000 & 3,000 & 3,000 & 3,000 & 12,000 \\ \hline Total Expenses & 79,068 & 23,986 & 94,786 & 104,261 & 372,101 \\ \hline Net Income (Loss) & (1.568) & 4,411 & 21,272 & 9.274 & 33,389 \\ \hline Cost/FTE & 2,551 & 2,410 & 2,061 & 2,317 & 9,245 \\ \hline \end{tabular} 6. Evaluating Possible Improvements The Center board has proposed 4 possible improvement initiatives, each of which can be pursued independently of the others. The proposed initiatives are summarized in Exhibit 3. Prepare an analysis (in Excel) showing the impact of each individual proposed improvement on SDC's forecasted net income for 2020-21. It will be helpful to use the contribution margin income statement approach in performing the analysis. You may wish to use the following format to summarize your results: Exhibit 1-2020-21 Budget Exhibit 2-20-21, Q1 \& Q2 Actual Exhibit 3-Options \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|l|}{ Exhibit 2} \\ \hline Sunshine Day Care Center & & & \\ \hline \multicolumn{4}{|l|}{ 2020-21 Actual, Quarters 1 \& 2} \\ \hline & Quarter 1 & Quarter 2 & \\ \hline FTES & 25 & 28 & \\ \hline Revenue & 60,000 & 67,200 & \\ \hline Revenue & 00,000 & 07,200 & \\ \hline \multicolumn{4}{|l|}{ Expenses: } \\ \hline Advertising/Promotion & 0 & 0 & \\ \hline Appliances & 0 & 0 & \\ \hline Bad Debt & 0 & 0 & \\ \hline Head-Quarters Assessments & 16,425 & 16,425 & \\ \hline Depreciation & 534 & 534 & \\ \hline Dues \& Subscriptions & 0 & 0 & \\ \hline Food \& Catering & 1,044 & 1,247 & \\ \hline License \& Permits & 20 & 124 & \\ \hline Insurance & 1,140 & 1,140 & \\ \hline Interest & 0 & 0 & \\ \hline Maintenance & Repairs & 2,251 & 1,957 & \\ \hline Office Supplies & 275 & 240 & \\ \hline Personnel & 26,782 & 28,450 & \\ \hline Postage \& Deliveries & 0 & 0 & \\ \hline Professional Fees & 0 & 0 & \\ \hline Property Tax & 2,745 & 2,745 & \\ \hline Rent & 14,664 & 14,664 & \\ \hline School Supplies & 520 & 570 & \\ \hline Taxes & 1,650 & 1,650 & \\ \hline Telephone & 1,275 & 1,165 & \\ \hline Training & 100 & 0 & \\ \hline Travel & 0 & 0 & \\ \hline Utilities & 2.650 & 2,850 & \\ \hline Total Expenses & 72,075 & 73,761 & \\ \hline Net Income (Loss) & (12,075) & (6,561) & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline \begin{tabular}{l} Exniort 1 \\ Sunshine Day Care Center \end{tabular} & & & & & \\ \hline \multicolumn{6}{|l|}{ Budget, 2020-21 } \\ \hline & & & & & \\ \hline & Budget & Budget & Budget & Budget & Budget \\ \hline & Q1 & Q2 & Q3 & Q4 & Year \\ \hline Average FTEs & 31 & 39 & 46 & 45 & 40.25 \\ \hline Revenue & 77,500 & 98,397 & 116,058 & 113,535 & 405,490 \\ \hline \multicolumn{6}{|l|}{ Expenses: } \\ \hline Advertising/Promotion & 375 & 375 & 375 & 375 & 1,500 \\ \hline Appliances & 0 & 0 & 0 & 500 & 500 \\ \hline Bad Debt & 79 & 101 & 119 & 126 & 425 \\ \hline Head-Quarters Assessments & 16,425 & 16,425 & 16,425 & 16,425 & 65,700 \\ \hline Depreciation & 534 & 534 & 534 & 534 & 0,136 \\ \hline Dues \& Subscriptions & 0 & 0 & 0 & 0 & 0 \\ \hline Food \& Catering & 1,098 & 1,405 & 1,664 & 1,772 & 5,939 \\ \hline License \& Permits & 0 & 650 & 100 & 0 & 750 \\ \hline Insurance & 1,140 & 1,140 & 1,140 & 1,140 & 4,560 \\ \hline Interest & 0 & 0 & 0 & 0 & 0 \\ \hline Maintenance \& Repairs & 3,750 & 3,750 & 3,750 & 3,750 & 15,000 \\ \hline Office Supplies & 300 & 300 & 300 & 300 & 1,200 \\ \hline Personnel & 31,433 & 45,072 & 46,245 & 55,405 & 178,155 \\ \hline Postage \& Deliveries & 0 & 0 & 0 & 0 & 0 \\ \hline Professional Fees & 0 & 0 & 0 & 0 & 0 \\ \hline Property Tax & 2,745 & 2,745 & 2,745 & 2,745 & 10,980 \\ \hline Rent & 14,664 & 14,664 & 14,664 & 14,664 & 58,656 \\ \hline School Supplies & 600 & 600 & 600 & 600 & 2,400 \\ \hline Taxes & 1,650 & 1,650 & 1,650 & 1,650 & 6,600 \\ \hline Telephone & 1,275 & 1,275 & 1,275 & 1,275 & 5,100 \\ \hline Training & 0 & 300 & 200 & 0 & 500 \\ \hline Travel & 0 & 0 & 0 & 0 & 0 \\ \hline Utilities & 3,000 & 3,000 & 3,000 & 3,000 & 12,000 \\ \hline Total Expenses & 79,068 & 23,986 & 94,786 & 104,261 & 372,101 \\ \hline Net Income (Loss) & (1.568) & 4,411 & 21,272 & 9.274 & 33,389 \\ \hline Cost/FTE & 2,551 & 2,410 & 2,061 & 2,317 & 9,245 \\ \hline \end{tabular} 6. Evaluating Possible Improvements The Center board has proposed 4 possible improvement initiatives, each of which can be pursued independently of the others. The proposed initiatives are summarized in Exhibit 3. Prepare an analysis (in Excel) showing the impact of each individual proposed improvement on SDC's forecasted net income for 2020-21. It will be helpful to use the contribution margin income statement approach in performing the analysis. You may wish to use the following format to summarize your results: Exhibit 1-2020-21 Budget Exhibit 2-20-21, Q1 \& Q2 Actual Exhibit 3-Options \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|l|}{ Exhibit 2} \\ \hline Sunshine Day Care Center & & & \\ \hline \multicolumn{4}{|l|}{ 2020-21 Actual, Quarters 1 \& 2} \\ \hline & Quarter 1 & Quarter 2 & \\ \hline FTES & 25 & 28 & \\ \hline Revenue & 60,000 & 67,200 & \\ \hline Revenue & 00,000 & 07,200 & \\ \hline \multicolumn{4}{|l|}{ Expenses: } \\ \hline Advertising/Promotion & 0 & 0 & \\ \hline Appliances & 0 & 0 & \\ \hline Bad Debt & 0 & 0 & \\ \hline Head-Quarters Assessments & 16,425 & 16,425 & \\ \hline Depreciation & 534 & 534 & \\ \hline Dues \& Subscriptions & 0 & 0 & \\ \hline Food \& Catering & 1,044 & 1,247 & \\ \hline License \& Permits & 20 & 124 & \\ \hline Insurance & 1,140 & 1,140 & \\ \hline Interest & 0 & 0 & \\ \hline Maintenance & Repairs & 2,251 & 1,957 & \\ \hline Office Supplies & 275 & 240 & \\ \hline Personnel & 26,782 & 28,450 & \\ \hline Postage \& Deliveries & 0 & 0 & \\ \hline Professional Fees & 0 & 0 & \\ \hline Property Tax & 2,745 & 2,745 & \\ \hline Rent & 14,664 & 14,664 & \\ \hline School Supplies & 520 & 570 & \\ \hline Taxes & 1,650 & 1,650 & \\ \hline Telephone & 1,275 & 1,165 & \\ \hline Training & 100 & 0 & \\ \hline Travel & 0 & 0 & \\ \hline Utilities & 2.650 & 2,850 & \\ \hline Total Expenses & 72,075 & 73,761 & \\ \hline Net Income (Loss) & (12,075) & (6,561) & \\ \hline \end{tabular}