accounting

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>