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.

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January February $220,000 $200,000 March $240,000 April $230,000