Question: Develop a cash budget based on the following information about a preschool: Revenue Tuition fee: $100,000 paid monthly Event income: $50,000 by Thanksgiving Foundation support:

Develop a cash budget based on the following information about a preschool:

Revenue Tuition fee: $100,000 paid monthly Event income: $50,000 by Thanksgiving Foundation support: $200,000 semiannually, May and November

Expense Salary and wages: $80,000 monthly Rent and insurance: $100,000 in January Supply and food: $10,000 monthly Administration and fundraising: $10,000 monthly

Assume the board of directors does not allow for short-term borrowing and that the cash safety margin is $80,000. How much operating reserve or liquidity should the school have to embark on the preschool program?

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