Start Smart 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 preschool’s primary expense is payroll. Teachers are paid a flat salary each of the nine months as follows:

Teachers of two- day program..................................................................... $ 434 per month
Teachers of three- day program................................................................... $ 648 per month
Teachers of four- day program..................................................................... $ 884 per month
Teachers of five- day program...................................................................... $ 1,060 per month
Preschool director’s salary........................................................................... $ 1,500 per month

Start Smart Preschool has 7 two- day program teachers, 2 three- day program teachers, 5 four- day program teachers, and 4 five- day program teachers. The preschool also has a director.
In addition to the salary expense, the 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 $ 4,012 every month it operates. Fixed operating expenses (telephone, Internet access, bookkeeping services, and so forth) amount to $ 890 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 $ 6 per child. Revenue for the entire nine- month school year from tuition, registration fees, and the lunch program is projected to be $ 241,200.

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