Reference no: EM132762645
California Day Care Centers (CDCC) is a partnership between local not-for-profit organizations and state and local governments whose mission is to provide quality affordable day care for children so that both parents (or other family members or guardians) are free to contribute their full-fledged services to the local, state and national economies. CDCC receives funding from state and local governments and charges families reduced fees to care for their children at their centers.
CDCC budgets the following revenue, expense and cash items related to its operations in the months of April and May:
CDCC expects to serve 900 children in April and 1,000 children in May.
For each child served, revenues and support are budgeted as follows:
- Families are charged a $250 monthly fee which they pay in full at the beginning of each month.
- CDCC bills the state $300 per child each month and collects the entire $300 one month after the billing.
- CDCC bills the local government (i.e. the California county in which the facility operates) $500 per child each month and collects $100 during the month of the billing and the remaining $400 during the next month.
- CDCC expects to receive a $100,000 cash donation from a child-care foundation in May.
Expenses and expenditures during the month of May are as follows:
Staff salaries expense: $425,000
Cost of food expense: $175,000
Insurance expense: $100,000
Cash paid for staff salaries: $275,000
Cash paid for food: $135,000
Cash paid for insurance: $15,000
Depreciation expense for equipment and facility: $30,000
CDCC will purchase new computers for a total of $750,000. Note: Depreciation on these computers is accounted for in the $30,000 depreciation expense above.
CDCC's May cash budget shows a beginning cash balance for the month of $130,000.
Problem 1: Prepare CDCC's operating budget for the month of May using the accrual accounting method. Include all appropriate subtotals.
Problem 2: Briefly explain why CDCC does not budget any tax expense or tax payments for May.
Problem 3: Briefly explain why expense amounts for staff salaries, cost of food, and insurance ($425,000, $175,000 and $100,000, respectively) all differ from their corresponding cash payment amounts ($275,000, $135,000, and $15,000, respectively).
Problem 4: Prepare CDCC's cash budget for the month of May. Include all appropriate subtotals.
|
Scientific method of fire investigation
: Briefly describe the steps of the scientific method of fire investigation. Which step, or steps, do you think are most important?
|
|
Explain most appropriate auditors opinion for laksa imports
: Using the Framework for Audit Opinions studied in this unit, explain the most appropriate auditor's opinion for Laksa Imports for the year ended 30th June 2020.
|
|
Situational leadership theory and organizational leadership
: Explain why situational leadership theory is useful and relevant in developing an effective leadership culture.
|
|
Find break-even point in unit and value
: Find Break-even point in unit and value. The Sales and Administration Manager otherwise believes that by purchasing highly sophisticated machine
|
|
Why expense amounts for staff salaries
: Why expense amounts for staff salaries, cost of food, and insurance ($425,000, $175,000 and $100,000, respectively) all differ from
|
|
Why is it important to wipe-off the moist
: Why is it important to wipe-off the moist on ice before adding it to the prepared calorimeter?
|
|
Determine variable cost per unit and the total fixed cost
: Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost
|
|
How does a roth ira work
: How does a Roth IRA work and what are the tax implications? Provide details of how an individual can use the Roth IRA to help them meet their retirement goals.
|
|
To which classes of assets will the adjustment be allocated
: As of the end of the current tax year, Valerie Fleming's tax basis in her partnership interest was $45,000. At that time she received a $60,000 non-liquidating.
|