Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Rhonda runs a six - week summer camp in the North Georgia Mountains ( three weeks in June and three weeks in July ) .
Rhonda runs a sixweek summer camp in the North Georgia Mountains three weeks in June and three weeks in July Between and campers sign up for the summer, each paying $ for the sixweek session. She receives as a down payment in March when the campers book their summer camp and the remainder on arrival at the camp for the summer in June. Rhonda pays her four counselors $ each in August. Rhonda buys the supplies for camp for cash in April, costing $ At the end of June, Rhonda normally has about $ of supplies left over and at the end of July, Rhonda had $ of supplies leftover if there are fewer campers and none left over with more campers enrolled. Utilities, horse feed, food are charged to the camps mastercard and paid at the end of August, totaling $$ depending on attendance, used evenly in each week of the sessions.Rhonda wants to buy a used bus for fieldtrips, costing $ but the bank requires an accrual basis and cash basis analysis for the summer camp to show she can pay back the loan in two years, even at lower enrollment levels. Please prepare a cash flow and accrual basis profit analysis for a typical summer camp season at low and high enrollment. Using these schedules, explain to Rhonda if she will likely be able to pay back the loan. Rhonda is busy so be brief and get to the point, including a clear schedule to support your points. A starter executive summary memo is provided to give you an idea of what Rhonda needs. The missing parts you complete. Edit and adjust to fit your results and ideas.LOW ENROLLMENTCASH BASIS:MarchAprilJuneJulyAugustSeasonRevenueCounselor salary expenseSupplies expenseUtilities, horses, foodProfitsACCRUAL BASIS:RevenueCounselor salary expenseSupplies expenseUtilities, horses, foodProfitsHIGH ENROLLMENTCASH BASIS:MarchAprilJuneJulyAugustSeasonRevenueCounselor salary expenseSupplies expenseUtilities, horses, foodProfitsACCRUAL BASIS:RevenueCounselor salary expenseSupplies expenseUtilities, horses, foodProfits
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Executive Summary Based on the provided information I have prepared cash flow and accrual basis prof...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started