You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 70 hours in your first month and 330 hours in your second month of business. You charge your customers $19 per hour. Your anticipated costs include:

Advertising	$7 per month
Gas	$1.50 per hour
Depreciation	$25 per month
Assistant's Wages	$7.00 per hour
Miscellaneous Expenses	$50 per month

You plan on collecting 90% of your sales in the month you mow the lawn and the remainder in the following month. Calculate the accounts receivable balance at the end of your second month of business.

Which of the following statements related to budgets is FALSE?

		Budgets must be prepared in accordance with GAAP (generally accepted accounting principles).
		Budgets may be prepared for periods longer or shorter than a year.
		Budgets may be expressed in dollars or in quantities.
		Budgets are useful to communicate the goals of the business in financial terms.