Discussion:
Develop a Cash Budget with a spread sheet
Develop a cash budget
Develop a cash budge based on the following information about the preschool:
Revenue:
Tuition fee: $1000, 00 paid monthly
Event income $50,000 by Thanksgiving
Foundation support $2000, 000 semiannually, May and November
Expense
Salary and wages: $80,000 monthly
Rent and Insurance $1000, 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 the cash safety margin is $80,000. How much operating reserve or liquidity should the school have to embard on the preschool program