Childrens Best Hope (CBH) provides day-care services to low-income families. CBH bills the state for its services
Question:
Children’s Best Hope (CBH) provides day-care services to low-income families. CBH bills the state for its services under a service contract. Billings for the first 4 months of 2023 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 2023. The full $250,000 purchase cost of the building will be financed with a mortgage loan. CBH anticipates a February 28, 2023, cash balance of $26,000. CBH anticipates the following expenses and disbursements for the month of March 2023:
Prepare an operating budget, cash budget, and capital budget for CBH for the month of March 2023.
Step by Step Answer:
Financial Management For Public Health And Not-for-Profit Organizations
ISBN: 9781071835333
7th Edition
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell