Question

Prety Place Preschool operates a not-for-proft moming preschool that operates rine months of the year. The preschool has 180 kids enrolled in its various programs. The preschool's primary expense is payrol. (Click the icon to view salary data) (Click the lcon to view additional infomation.) Requirements 1. Prepare Pretty Place Preschoor's monthly operating budget. Round al amounts to the nearest dolar. 2. Using your answer from Requirement 1, create Pretty Place Preschool's budgeted income statement for the entire nine-month school year. You may group all operaing expenses together 3. Pretty Place Preaschool is a not-for-proft preschool. What might the preschool do with its projected income for the year?

Answer 1

1	Monthly operating budget
	2-day program	3,080
	3-day program	3,230
	4-day program	2,586
	5-day program	6,420
	Director salary	1,350
	Total salary expense		16,666
	Payroll tax expense [16,666/(1-0.0765)]*7.65%		1,381
	lease expense		5,000
	Fixed operating expense		930
	variable operating expense		1,260
	Total monthly operating expenses		25,237
2	Budgeted Income Statement for 9 months school year
	Particulars	Amount
	Revenue	239,100
	Less:
	Operating Expenses (25,237*9)	(227,133)
	Income	11,967
3	Although Pretty place preschool is a non profit organization, budgeted income statement helps the organization to track its progress and also helps in prioritizing the critical activities to achieve their mission