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Note 6 – Property and Equipment
Property and equipment at June 30, 2016 and 2015 is as follows:
Leasehold improvements Computer equipment and software Office equipment
Furniture and fixtures
Vehicles
Less accumulated depreciation and amortization Property and equipment, net
June 30,
CHILD CARE RESOURCE CENTER, INC. NOTES TO FINANCIAL STATEMENTS
$
$
2016
1,340,874 3,798,943 4,910,565 2,078,227 1,144,562
13,273,171 (8,795,229)
4,477,942
$
$
2015
1,089,230 3,139,787 4,642,716 2,056,216
857,843 11,785,792
(7,695,853) 4,089,939
Depreciation and amortization expense for the years ended June 30, 2016 and 2015 amounted to $1,099,376 and $916,720, respectively.
Note 7 – Line of Credit
At June 30, 2016, CCRC had a revolving line of credit with East West Bank of $8,000,000 which will expire on March 15, 2017. The effective interest rate at June 30, 2016 for the line of credit was 4.00% per annum. Collateral used to secure the line of credit does not include any property acquired or improved with federal funds from the DHHS – ACF for the benefit of the Head Start Program.
CCRC also has a demand line of credit with U.S. Bank of $1,300,000 which will expire upon CCRC’s demand. The effective interest rate at June 30, 2016 for the line of credit was the prime rate announced by U.S. Bank minus 1.85% per annum. At June 30, 2016 and 2015, there were no outstanding balances on the line of credits.
Note 8 – Fair Value of Financial Instruments
The carrying amounts of cash, receivables, accounts payable, and accrued expenses approximate fair value due to the short maturity of these instruments.
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