Rose runs a six-week summer camp (three weeks in June and three weeks in July). Between 20 and 30 campers sign up for the summer, each paying $2,000 for the six-week session. She receives 20% as a down payment in March when the campers book their summer camp and the remainder on arrival at the camp for the summer in June. Rose pays her four counselors $3,000 each in August. Rose buys the supplies for camp for cash in April, costing $4,000. At the end of June, Rose normally has about $2000 of supplies left over and at the end of July, Rose had $350 of supplies leftover if there are fewer campers and none left over with more campers enrolled. Utilities, horse feed, and food are charged to the camps mastercard and paid at the end of August, totaling $6,000-$7,000, depending on attendance, used evenly in each week of the sessions.

Prepare an income statement at the low enrollment and high enrollment with both having a cash basis and accrual basis ?

Rose wants to buy a used bus for field trips, costing $37,000, but the bank requires an accrual basis and cash basis analysis for the summer camp to show she can pay back the loan in two years, even at lower enrollment levels. Please prepare a cash flow and accrual basis profit analysis for a typical summer camp season at low and high enrollment. Using these schedules, explain to Rose if she will likely be able to pay back the loan, including a clear schedule to support your points.

\begin{tabular}{|c|c|c|c|c|c|c|c|} \hline 19 & \multicolumn{7}{|c|}{ LOW ENROLLMENT } \\ \hline 20 & CASH BASIS: & March & April & June & July & August & Season \\ \hline 21 & Revenue & & & & & & \\ \hline 22 & Counselor salary expense & & & & & & \\ \hline 23 & Supplies expense & & & & & & \\ \hline 24 & Utilities, horses, food & & & & & & \\ \hline 25 & Profits & & & & & & \\ \hline 26 & & & & & & & \\ \hline 27 & ACCRUAL BASIS: & & & & & & \\ \hline 28 & Revenue & & & & & & \\ \hline 29 & Counselor salary expense & & & & & & \\ \hline 30 & Supplies expense & & & & & & \\ \hline 31 & Utilities, horses, food & & & & & & \\ \hline 32 & Profits & & & & & & \\ \hline 33 & & & & & & & \\ \hline 34 & \multicolumn{7}{|c|}{ HIGH ENROLLMENT } \\ \hline 35 & CASH BASIS: & March & April & June & July & August & Season \\ \hline 36 & Revenue & & & & & & \\ \hline 37 & Counselor salary expense & & & & & & \\ \hline 38 & Supplies expense & & & & & & \\ \hline 39 & Utilities, horses, food & & & & & & \\ \hline 40 & Profits & & & & & & \\ \hline 41 & & & & & & & \\ \hline 42 & ACCRUAL BASIS: & & & & & & \\ \hline 43 & Revenue & & & & & & \\ \hline 44 & Counselor salary expense & & & & & & \\ \hline 45 & Supplies expense & & & & & & \\ \hline 46 & Utilities, horses, food & & & & & & \\ \hline 47 & Profits & & & & & & \\ \hline \end{tabular}