E9-24A (similar to Question Help * Play Place Preschool operates a not-for-profi
ID: 2562984 • Letter: E
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E9-24A (similar to Question Help * Play Place Preschool operates a not-for-profit moning preschool that operates eight months of the year. The preschool has 164 kids enrolled in its various programs. The preschool's primary expeise is payroll. Teachers are paid a fat salary each of the eight months as follows: (Click the icon to view salary data.) (Click the icon to view additional information.) 1. Prepare Play Place Preschocl's monthly operating budget. Round all amounts to the nearest dollar 2. Using your answer from Requirement 1, create Play Place Preschool's budgeted income statement for the entire eight-month school year. You may group all operating expenses together. 3. Play Place Preschool is a not-for-profit preschool. What might the preschool do with its projected income for the year? Salary data Requirement 1. Prepare Play Place Preschool's monthly operating budget. Round all amounts to the nearest dollar. (Round amounts to the nearest dollar.) Play Place Preschool Budgeted Monthly Operating Expenses Teachers of two-day program Teachers of three-day program: Teachers of four-day program: Teachers of five-day program: Preschool director's $440 per month S642 per month S860 per month $1,040 per month $1,600 per month Teachers' salary: 2-day program 3-day program Play Place Preschool has 9 two-day program teachers, 4 three-day 4-day program program teachers, 7 four-day program teachers, and 2 five-day program teachers. The preschool aso has a director S-day program Director salary Total salary expense Payroll tax expense Lease expense Fixed operating expenses Varlable operating expenses Total monthly operating expenses More Info In addition to the salary expense, the preschool must pay federal payroll taxes (FICA taxes) in the amount of 7.65% of salary expense. The preschool leases its facilities from a local church, paying S4.060 every month it operates. Fixed operating expenses (telephone, internet access, bookkeeping services, and so forth) amount to $860 per month over the eight-month school year. Variable monthly expenses (over the cight-month school year) for art supplies and other miscellaneous supplies are $8 per child. Revenue for the entire eight-month school year from tuition, registration fees, and the lunch program is projected to be $241,300. PrintDoneExplanation / Answer
Answer 1. Play Place PreSchool Budgeted Monthly Operating Expenses Teachers' Salary: 2-Day Program - $440 X 9 Nos 3,960 3-Day Program - $642 X 4 Nos 2,568 4-Day Program - $860 X 7 Nos 6,020 5-Day Program - $1,040 X 2 Nos 2,080 30162.5 Director Salary - $1,600 X 1 Nos 1,600 Total Salary Expense 16,228 Payroll Tax Expense - 7.65% X $16,228 1,241 Lease Expense 4,060 Fixed Operating Expenses 860 Variable Operating Expenses - $8 X 164 Kids 1,312 Total Monthly Operating Expenses 23,701 Answer 2. Play Place PreSchool Budgeted Income Statement For the Year Ended Tution, registration fees, and lunch bunch revenue 241,300 Operating expenses - $23,701 X 8 Months 189,612 Operating Income 51,688 Answer 3. From the budgeted Income Statement, Play Place Preschool Learns that $51,688 projected operating income for the year. Since, the preschool is a not-for-profit preschool, it cannot use profits in business to generate income for its owners. The Preschool may be able to: 1. Improve the Current Program 2. Invest in additional (or better) classroom equipments. 3. Invest in additional (or better) playground equipments. 4. Offer scholarships to families who have difficulty paying tution fees.
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