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Develop a cash budget based on the following information about a K-12 school. Its fiscal year runs from July 1 to June 30.
Cash inflow:
Federal sources: $300,000, paid in JanuaryState sources: $300,000, paid bimonthlyLocal sources: $200,000, paid semiannually in July and January
Cash outflow:
Personnel services costs: $100,000Contracted services: $10,000School operations: $20,000Facility operations & maintenance: $30,000
Problem 1: Assuming that the initial cash balance is $100,000 at the beginning of the school year and the cash safety margin is $10,000, what does the cash budget tell you? What do you do with this information?
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