Question
PLEASE HELP ANSWER ASAP Future Stars Preschool daycare operates a not-for-profit morning daycare that operates nine months of the year. Future Stars has 161 kids
PLEASE HELP ANSWER ASAP
Future Stars Preschool daycare operates a not-for-profit morning daycare that operates nine months of the year. Future Stars has 161 kids enrolled in its various programs. Future Stars primary expense is payroll. Teachers are paid a flat salary for each of the nine months as follows:
Salary Data |
|
Teachers of two-day program | $ 438/month |
Teachers of three-day program | $ 651/month |
Teachers of four-day program | $ 872/month |
Teachers of five-day program | $1,040/month |
Directors salary | $1,250/month |
|
|
Future Stars has eight, two-day program teachers, five, three-day program teachers, seven, four-day program teachers, and three, five-day program teachers. There is one overall Director of the organization.
In addition to the salary expense, Future Stars must pay payroll taxes in the amount of 7.65% of salary expense. Future Stars leases its facilities from a local church, paying $2,200 per month plus 10.75% of monthly tuition revenue. Fixed operating expenses (telephone, internet access, bookkeeping services, and so forth) amount to $890 per month over the nine-month school year. Variable monthly expenses (over the nine-month school year) for art supplies and other miscellaneous supplies are $10 per child. Revenue for the entire nine-month school year from tuition and registration fees is projected to be $291,865. The monthly tuition revenue is $26,710.
Required:
- Prepare Future Stars Preschool daycare monthly operating budget. Round all amounts to the nearest dollar.
- Using your answer from (1.), create Future Stars Preschool daycares budgeted income statement for the entire nine-month school year assuming that revenue for the nine-month period is what has been stated in the problem.
- As Future Stars is a not-for-profit preschool, what might Future Stars do with its projected net income for the year?
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