2-28. Roche City has two major sources of revenues, property tax and sales tax, which are...

  

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2-28. Roche City has two major sources of revenues, property tax and sales tax, which are billed according to the schedule as follows. July Aug Sep 45,000,000 2023 Property Tax ($) Sales Tax ($) 50,000 55,000 62,000 Oct --- 50,000 Nov 68,000 Dec --- 112,000 Traditionally, property tax revenues have been received in cash according to the following schedule: 40 percent in the first month following the billing date 20 percent in the second month 10 percent in the third month 10 percent in the fourth month 8 percent in the fifth month 5 percent in the sixth month 7 percent are not collected The state collects the sales tax revenues and will transfer cash to the city on March 1, 2024, for the sales tax revenues earned in the last quarter of 2023. Roche City is not planning any capital asset purchases during the next 3 months. Monthly cash disbursements for general operations are $3.7 million. Beginning cash balance for January 1, 2024, is $500,000. Roche City will borrow to ensure that the ending cash balance each month is at least $100,000. Use this information to prepare a monthly cash budget for Roche City for January, February, and March of 2024. 2-34. Prisons Counselors (PC) 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 $14,000, respectively, for the months of January, February, and March. PC bills the state electronically at the end of each month for the services that it delivers to its fee-for- service clients. PC collects 60 percent of its fee-for-service billings in the month following the delivery of service, with the remainder being collected in the second month after the delivery of services. What are PC's total cash receipts from the state for the month of March? 2-28. Roche City has two major sources of revenues, property tax and sales tax, which are billed according to the schedule as follows. July Aug Sep 45,000,000 2023 Property Tax ($) Sales Tax ($) 50,000 55,000 62,000 Oct --- 50,000 Nov 68,000 Dec --- 112,000 Traditionally, property tax revenues have been received in cash according to the following schedule: 40 percent in the first month following the billing date 20 percent in the second month 10 percent in the third month 10 percent in the fourth month 8 percent in the fifth month 5 percent in the sixth month 7 percent are not collected The state collects the sales tax revenues and will transfer cash to the city on March 1, 2024, for the sales tax revenues earned in the last quarter of 2023. Roche City is not planning any capital asset purchases during the next 3 months. Monthly cash disbursements for general operations are $3.7 million. Beginning cash balance for January 1, 2024, is $500,000. Roche City will borrow to ensure that the ending cash balance each month is at least $100,000. Use this information to prepare a monthly cash budget for Roche City for January, February, and March of 2024. 2-34. Prisons Counselors (PC) 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 January, February, and March. PC bills the state electronically at the end of each month for the services that it delivers to its fee-for- service clients. PC 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 PC's total cash receipts from the state for the month of March?

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Lets address each problem separately Problem 228 Roche City Cash Budget January 2024 Beginning cash ... View the full answer