The State University Research Foundation (SURF) expects to have the revenue and expenses shown in the operating
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The State University Research Foundation (SURF) expects to have the revenue and expenses shown in the operating budget below. The state research contract pays SURF two quarters after it is billed and the Foundation pays SURF one quarter after it is billed. Salaries are paid in the quarter the expense is incurred and supplies are paid for one quarter after they are used. Assuming SURF starts the 3rd quarter with $500,
prepare a cash budget for the 3rd Quarter of the year.
Operating Budget | Q1 | Q2 | Q3 | Q4 | Full Year |
Revenue | |||||
State Contract | $ 5,000 | $ 7,500 | $ 10,000 | $ 5,000 | $ 27,500 |
Foundation Grant | $ 15,000 | $ 15,000 | |||
Total Revenue | $ 5,000 | $ 22,500 | $ 10,000 | $ 5,000 | $ 42,500 |
Expenses | |||||
Staff | $ 3,000 | $ 12,500 | $ 5,000 | $ 3,000 | $ 23,500 |
Supplies | $ 2,000 | $ 9,000 | $ 4,000 | $ 1,000 | $ 16,000 |
Total Expenses | $ 5,000 | $ 21,500 | $ 9,000 | $ 4,000 | $ 39,500 |
Profit/(Loss) | $ - | $ 1,000 | $ 1,000 | $ 1,000 | $ 3,000 |
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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