The town prepares its operating budget following the unique rules of modified accrual accounting employed by governments. Under these rules expenses are recognized when the town receives goods or services and becomes legally obligated to pay for them. It does not matter if they have been used or not. Also, cash inflows or proceeds from long-term loans are treated as if they were revenues. Using the information from the table below, prepare an operating budget and a cash budget for Middleboro Township for the fourth quarter only. Assume the town has $300,000 in cash when the fourth quarter starts.