Question
Childrens Best Hope (CBH) provides day care ser-vices to low income families. CBH bills the state for its services under a service contract. Billings for
Childrens Best Hope (CBH) provides day care ser-vices to low income families. CBH bills the state for its services under a service contract. Billings for the first four months of 2013 are anticipated to be as follows: CBH finds that it collects 25 percent of the amounts billed in the month of service with the balance collected in the month following service. CBH is planning to acquire a new building as an additional site for its services in March 2013. The full $ 250,000 purchase cost of the building will be financed with a mortgage loan. CBH anticipates a February 28, 2013, cash balance of $ 26,000. CBH anticipates the following expenses and disbursements for the month of March 2013: Payroll payments$ 170,000 Personnel expenses$ 160,000 Payments to suppliers..$ 45,000 Supplies expense.$ 48,000 Depreciation expense..$ 12,000 Interest expense$ 6,000 Prepare an operating budget, cash budget, and capital budget for CBH for the month of March2013.
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