Greatland Preschool operates a not- for- profit morning preschool that operates nine months of the year. The preschool has 160 kids enrolled in its various programs. The pre-school’s primary expense is payroll. Teachers are paid a flat salary each of the nine months as follows:
Salary data
Teachers of two- day program.................................................................... $ 430 per month
Teachers of three- day program.................................................................. $ 654 per month
Teachers of four- day program.................................................................... $ 868 per month
Teachers of five- day program..................................................................... $ 1,060 per month
Preschool director’s salary.......................................................................... $ 1,350 per month

Greatland Preschool has 9 two- day program teachers, 2 three- day program teachers, 7 four- day program teachers, and 3 five- day program teachers. The preschool also has a director.
In addition to the salary expense, Greatland 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 $ 4,040 per month. Fixed operating expenses (telephone, Internet access, bookkeeping services, and so forth) amount to $ 940 per month over the nine- month school year. Variable monthly expenses (over the nine- month school year) for art supplies and other miscellaneous supplies are $ 11 per child. Revenue for the entire nine- month school year from tuition, registration fees, and the lunch program is projected to be $ 246,400.

Requirements
1. Prepare Greatland Preschool’s monthly operating budget. Round all amounts to the nearest dollar.
2. Using your answer from Requirement 1, create Greatland Preschool’s budgeted ­income statement for the entire nine- month school year. You may group all operating expenses together.
3. Greatland Preschool is a not- for- profit preschool. What might the preschool do with its projected income for the year?