Sure, let's walk through the problem step-by-step to determine the daycare center's monthly revenue, expenses in various categories, total expenses, and balance:
First, we calculate the monthly revenue:
- Weekly revenue = [tex]$15,000
- There are approximately 4 weeks in a month.
- Monthly revenue = \( 15,000 \times 4 = 60,000 \) dollars
Next, we determine the expenses for each category using the percentages provided. The percentages will be applied to the monthly revenue of \$[/tex]60,000.
1. Employee Wages:
[tex]\[
60,000 \times 0.40 = 24,000 \text{ dollars}
\][/tex]
2. Building Rent:
[tex]\[
60,000 \times 0.05 = 3,000 \text{ dollars}
\][/tex]
3. Supplies:
[tex]\[
60,000 \times 0.15 = 9,000 \text{ dollars}
\][/tex]
4. Equipment:
[tex]\[
60,000 \times 0.05 = 3,000 \text{ dollars}
\][/tex]
5. Educational Licensing:
[tex]\[
60,000 \times 0.02 = 1,200 \text{ dollars}
\][/tex]
6. Food:
[tex]\[
60,000 \times 0.13 = 7,800 \text{ dollars}
\][/tex]
7. Utilities:
[tex]\[
60,000 \times 0.10 = 6,000 \text{ dollars}
\][/tex]
8. Maintenance:
[tex]\[
60,000 \times 0.05 = 3,000 \text{ dollars}
\][/tex]
9. Emergency/Repair:
[tex]\[
60,000 \times 0.05 = 3,000 \text{ dollars}
\][/tex]
Now, we calculate the total monthly expenses by summing up all the individual expenses:
[tex]\[
24,000 + 3,000 + 9,000 + 3,000 + 1,200 + 7,800 + 6,000 + 3,000 + 3,000 = 60,000 \text{ dollars}
\][/tex]
Finally, we determine the balance by subtracting the total expenses from the monthly revenue:
[tex]\[
60,000 - 60,000 = 0 \text{ dollars}
\][/tex]
So the balance sheet representing the daycare's income, expenses, and balance would look like this:
- Monthly Revenue: \[tex]$60,000
- Expenses:
- Employee Wages: \$[/tex]24,000
- Building Rent: \[tex]$3,000
- Supplies: \$[/tex]9,000
- Equipment: \[tex]$3,000
- Educational Licensing: \$[/tex]1,200
- Food: \[tex]$7,800
- Utilities: \$[/tex]6,000
- Maintenance: \[tex]$3,000
- Emergency/Repair: \$[/tex]3,000
- Total Expenses: \[tex]$60,000
- Balance: \$[/tex]0
Thus, the daycare's monthly budget correctly balances out with their income fully covering their planned expenses, leaving a balance of [tex]\(0\)[/tex] dollars at the end of the month.
