Prisons R Us (PRU) delivers counseling services to prison inmates for the state on a fee for service basis It is preparing its cash budget for the month of March Its operating budget reflects accrued fee for service revenues of $ 12,500, $ 13,000, and $ 14,000, respectively, for the months of Janua...

Prisons R Us (PRU) delivers counseling services to prison inmates for the state on a fee-for-service basis.

Question:

Prisons R Us (PRU) delivers counseling services to prison inmates for the state on a fee-for-service basis. It is preparing its for the month of March. Its operating budget reflects accrued fee-for-service revenues of $ 12,500, $ 13,000, and $ 14,000, respectively, for the months of January, February, and March. PRU bills the state electronically at the end of each month for the services that it delivers to its fee-for-service clients. PRU collects 60 percent of its fee-for-service billings in the month following the delivery of service, with the remainder being collected in the second month after the delivery of services. What are PRU’s total cash receipts from the state for the month of March?

Cash Budget
A cash budget is an estimation of the cash flows for a business over a specific period of time. These cash inflows and outflows include revenues collected, expenses paid, and loans receipts and payment. Its primary purpose is to provide the...