You are a budget analyst in the Budget Office of the City of Northville. Mayor Spark just asked you to "run some numbers" so that she can take a look at the arrangement that was just negotiated between Ms. Lux, Mr. Legato, and Ms. Nemet. You should prepare the budget in a spreadsheet. Since Mayor Spark may ask you some questions about the daycare budget, you should prepare the budget using parameters and as many formulas as possible. A well-designed (and flexible) spreadsheet will simplify your task later. Complete the following tasks and provide the tables and a brief one-page memo describing your findings: 

1) Prepare the baseline 2000 monthly budget for the daycare. (You can assume a calendar year.) Determine the total surplus and deficit for each month. 

2) Suppose the child/staff ratio was changed to the maximum allowed by law. What impact would this have on the budget? 

3) What would happen to the deficit if the enrollment increased by only 5 percent per month for all months? 

4) What other changes can be made to balance the budget? What are the advantages and disadvantages of these changes? Produce a balanced budget and defend your choice of changes.