Question
Develop a cash budget based on the blowing information about a preschool: Revenue Tuition fee: $100,000 paid monthly Event income: $50,000 by Thanksgiving Foundation support:
Develop a cash budget based on the blowing information about a preschool:
Revenue
Tuition fee: $100,000 paid monthly
Event income: $50,000 by Thanksgiving
Foundation support: $200,000 semiannually. May and November
Liquidity and Managing Cash Flow
Expense
Salary and wages: $80,000 monthly
Rent and insurance: $100,000 in January
Supply and food: $10,000 monthly
Administration and fundraising: $10,000 monthly
Assume the board of directors does not allow for short-term borrowing and that the cash safety margin is $80,000. How much operating reserve or liquidity should the school have to embark on the preschool program?
Step by Step Solution
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Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587
