Question

Children’s 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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  • CreatedDecember 19, 2014
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