In no more than one sentence, define "budget". Donna Jones has just started a charity reprogramming old cell phones for use by unhoused families. Donna has arranged to get the phones free from electronic stores around town. In the first year, shelters buy $4,000 worth of phones from Donna paying her $2,100 and owing $1,900. Donna's only expense is a fee paid to the phone company to activate the phones. Total phone company fees were $3,200 for the year. Donna paid only $2,300 of the fees. Answer all three parts of this question. (6 points) a. What is the profit or loss to Donna's charity on a cash basis? b. What is the profit or loss to Donna's charity on an accrual basis? c. Which basis reflects long-term stability or profitability of the business and why? The Town of Foothills estimates that it will need a new fire truck (ladder truck) in 15 years. When the truck is purchased 15 years from now, it is expected to cost $950,000 at that time. The city can currently invest money at an annual 6% interest rate. (6 points) a. How much cash does Foothills have to set aside today (meaning present value) in order to have the $950,000 in 15 years assuming monthly compounding of interest? b. What about with annual compounding of interest? Provide two distinct reasons why capital assets warrant special attention in budgeting? (4 points) Label each type of cost incurred by an elementary school as fixed, variable, or step-fixed based on changes in student enrollment: (4 points, 1 point each) Principal's salary: School buses: Teachers' salaries: Textbooks: