It’s Carnival Time at Little Brother’s school and the attached parish.
I’m no fan of Carnival, but my kids are. Little Brother was sad last night because the Big Kids went there without him (he’s going tomorrow!)
At dinner Little Brother asked what happens to the money that is made from the event. “Do they use that to pay for the Carnival workers?”
I explained the difference between gross receipts and profits, and listed a few of the things that the parish would have to pay for, such as ride rentals, game prizes, and the workers’ salary. Then he wanted to know where the extra money goes.
“Some goes to help the school, and some goes to help the parish,” I told him.
He had an easy enough time figuring out some of the things the school would do with the money. But he was mystified at why the parish might need cash flow as well. After considering it for a bit, he said, “Well, I guess they use that to buy bread and wine. There’s never enough wine.”