Accounting Assignment - Adult Daycare In Scottsdale, Arizona

  1. Home
  2. Homework Library
  3. Business
  4. Accounting
  5. Accounting Assignment - Adult Daycare In Scottsdale, Arizona

QuestionQuestion

Create an adult daycare in Scottsdale, Arizona, business starts on January 1, 2016 with the capacity to care for 100 people. The months of October – April are 15% busier than all other months due to winter travelers needing our services. I need to use the following items to create an income statement, balance sheet, statement of cash flow, and breakeven analysis.
1. The new company will be a c-corporation, with two investors (in return for sale of stock, one investor contributes $1.5 million and the other contributes $2.5 million to the business).
2. A long-term loan in the amount of $2,100,000 at 2.94% 30-yr fixed
3. Sales Revenue for each month:
a. May – September consists of 80 program participants @ $114/day
b. October – April consists of 100 program participants @ $114/day
4. Cost estimate to build a fire resistive (ISO Class 6, IBC Type IA) building:
Buildout, Demo, and Landscape                                                           $3,850,000
Solar Panel Installation                                                                          $20,000
Parking Lot (15 spaces @195 square feet per space = 3510 sq ft) $62,500
Construction of Facility:                                                                          $3,932,500
Purchase of Property                                                                             $990,000
Total Site Cost:                                                                                     $4,922,500

5. New computer equipment = $9,476.74 to be depreciated over the next five years.
6. Computer software = $2, 554.93
7. Utilities =
a. Electric $1,876 per month
b. Water $530 per month
c. Sewer $425 per month
d. Garbage $200 per month
e. Fire protection = $      per month
8. Biomedical Disposal Fee = $246.12 month + $40.42 in shipping/month = $286.54/Month total
9. Costs of Meals = $3.89 per day per program participant
10. Wages & Personnel Benefits:
Wages = $77,496 per month
Payroll Tax = ???
Workers’ Comp = ???
Taxes and Personnel Benefits (as a percent of salaries):
a. Social Security (for employer share) 6.20%
b. Medicare (for employer share) 1.45%
c. Federal Unemployment 0.80%
d. State Unemployment 2.00%
e. Workmen's compensation 0.10%
f. Other taxes (local Scottsdale) 1.65%
g. Health insurance             15.00%
11. Seasonality: All of the following are expected to increase by 15% for the months of October, November, December, January, February, March, and April.
a. Utilities
b. Wages for RNs
c. Wages for Nursing Aides
d. Wages for Therapy Aides
e. Occupancy (# of participants)
f. Number of meals needed
12. The company will sponsor two $1,000 scholarships for local college students.
13. The company will be charged a one-time $995.00 accreditation fee in December of year 1.
14. The company will buy space at a local tradeshow for $450.00
15. Attorney costs for the startup (contracts, articles of incorporation) will be $5,000
16. Vehicle maintenance = $240.00 per month
17. Vehicle repairs in April, August, and December -- $500 each occurrence
18. Medical Expense = $300 per month
19. Equipment Expense = $400 per month
20. Office/Administrative Expense = $225 per month
21. Professional Fees = $400 per month
22. Insurance Expense = $9,075 per month
23. Miscellaneous Expense = $400 peer month
24. Contingency Plan/Savings acct = $400 per month
25. High speed internet, cable TV, and phone = $175 per month
26. POS Machine Expense = $75.00 per month
27. Security Alarm Monitoring Exp = $39.99 per month
28. Permit fees = $85.00 per year
29. Web domain fee = $45.00 per month
30. Document Shredding Service Expense = $28.99 per month
31. Gasoline = $2.86/gallon = $300 per month
32. Advertising/Marketing Expense = $1,300 January of year 1, and $
33. Credit card merchant account is $25/mo (+ 2.2% of sales transactions). It is estimated that 66% of sales will be completed via credit card transactions.
34. Beginning in February of year 1, Accounts Receivables will have a balance of $12,000, with $4,000 paid each month after that. An additional $2,000 Accounts Receivables with be added each month as new customers make purchases on credit. All A/R clients have 60 days to repay.
35. $455,000 in grants received in year 1.
36. $200,000 in grants expected in year 2 and 3, respectively.
37. $10,000 received for startup costs during a fundraiser in December 2015.

Solution PreviewSolution Preview

This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.

Accounting Assignment - Adult Daycare In Scottsdale, Arizona
    $140.00 for this solution

    PayPal, G Pay, ApplePay, Amazon Pay, and all major credit cards accepted.

    Find A Tutor

    View available Accounting Tutors

    Get College Homework Help.

    Are you sure you don't want to upload any files?

    Fast tutor response requires as much info as possible.

    Decision:
    Upload a file
    Continue without uploading

    SUBMIT YOUR HOMEWORK
    We couldn't find that subject.
    Please select the best match from the list below.

    We'll send you an email right away. If it's not in your inbox, check your spam folder.

    • 1
    • 2
    • 3
    Live Chats