The Miami An Museum (MAM) is concerned about how much cash it will have on hand when
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• MAM makes its rent payments at the end of every six months for the previous six months. • Educational materials for visitors are paid for one quarter in advance.
• Visitor donations are removed from the collection boxes at the end of each business day and deposited in the bank.
• Individual donations from mail and telephone solicitations are received approximately one month after they have been pledged. Over the past two years these donations have remained steady at $10,000 a month.
• Of the foundation grants, two foundations will send MAM grant checks of $60,000 each in the first quarter. Another foundation will send its $60,000 grant in the second quarter. Finally, one of the foundation grants for the new gallery will be paid in the second quarter.
• The Miami Art Museum will start the new fiscal year with a beginning cash balance of S10,000.
Required:
a). Create a quarterly cash budtet for the find two quarters of MAM's 2008 fiscal year Assume there are three months in each quarter.
b). Will MAM have a positive ending cash balance in quarter two?
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Related Book For
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott
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