Unified Path gives a $93,000 grant to Care for the Homeless at the start of its
ID: 2712071 • Letter: U
Question
Unified Path gives a $93,000 grant to Care for the Homeless at the start of its fiscal year on January 1. To expand its activities, Care for the Homeless also convinces the city, state, and county governments to give it additional funds for the year. The city will give $24,000, the state will give $88,000, and the county will give $50,000. The city pays its share in equal monthly installments after the month has ended (the payment for January arrives in February, and so on). The state pays 50% in the first month of the year and the balance equally over the remaining months. The county pays 10% of its outstanding balance each month with any balance paid in the last month. Prepare a cash budget for January, February, and March showing just the cash inflows for each month. I wann know the solution step by stepExplanation / Answer
Payment by city
Equal monthly instalment = total payment/ No. of months
= 24000/3
=8000
And the payment will start from the month of February.
January
February
March
Payment by city
0
8000
8000
Payment by State
Total payment = 88000
It pays 50% in the January = 88,000x50%
= 44,000
Remaining payment = 88,000 -44,000
= 44,000
Remaining 44,000 is paid in equal instalment in remaining 11 months. Hence monthly payment would be
Monthly payment from 2nd month = 44000/11
= 4000
January
February
March
Payment by state
44000
4000
4000
Payment by County
Total payment = 50000
Payment in January = 50,000 x 10% =5000
Outstanding balance in January = 50,000-5000 =45000
Payment in February = 45000 x10% = 45000
Outstanding balance in February = 45,000-5000 =40,500
Payment in March = 40,500 x10% = 4,050
Cash budget
January
February
March
Payment by city
0
8000
8000
Payment by state
44000
4000
4000
Payment by county
5000
4500
4050
Total
49000
16500
16050
January
February
March
Payment by city
0
8000
8000
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