The State University Research Foundation (SURF) expects to have the revenue and expenses shown in the operating budget below. The state research contract pays SURF two quarters after it is billed and the Foundation pays SURF one quarter after it is billed. Salaries are paid in the quarter the expense is incurred and supplies are paid for one quarter after they are used. Assuming SURF starts the 3^rd quarter with $500, 

prepare a cash budget for the 3^rd Quarter of the year.

Operating Budget	Q1	Q2	Q3	Q4	Full Year
Revenue
State Contract	$ 5,000	$ 7,500	$ 10,000	$ 5,000	$ 27,500
Foundation Grant		$ 15,000			$ 15,000
Total Revenue	$ 5,000	$ 22,500	$ 10,000	$ 5,000	$ 42,500
Expenses
Staff	$ 3,000	$ 12,500	$ 5,000	$ 3,000	$ 23,500
Supplies	$ 2,000	$ 9,000	$ 4,000	$ 1,000	$ 16,000
Total Expenses	$ 5,000	$ 21,500	$ 9,000	$ 4,000	$ 39,500
Profit/(Loss)	$ -	$ 1,000	$ 1,000	$ 1,000	$ 3,000