You are the executive director of a community service agency in the inner city. Your operation is funded through a combination of cash contributions, federal government grants, and city contracts. Your revenue budget for the coming fiscal year is shown at the top of the shown below.

You know from past experience that not all of your revenue and support is collected when you earn it. Cash contributions are collected in the quarter they are pledged. Federal government grants are collected one quarter after you send the granting agency a bill. The city pays 25 percent of what it owes you one quarter after you send in the bill. An additional 25 per-cent is collected from the city in two quarters and the remaining 50 percent takes three quarters to collect. Starting with the revenue budget above, calculate the amount you can expect to collect in the fourth quarter of coming fiscalyear.

Transcribed Image Text:

Revenue Budget for Coming Fiscal Year Source of Revenue Contributions Federal Grants City Contracts Total Q 1 25,000 $240,000 Q 2 35,000 $300,000 Q 3 35,000 $320,000 Q 4 50,000 $250,000 $375,000 350,000 $250,000 360,000 $515,000 $710,000 $705,000 $660,000