Question

Q1 You operate a small nonprofit that provides subsidized tutoring services to high school students in underserved areas. Approximately 60% of the direct costs of tutoring are billed to schools attended by your clients, while approximately 20% are billed directly to the students. The remainder comes from general operating funds provided by foundations and individual donations. Assume that you know the following:

• Of the funds billed directly to schools, two thirds are paid in the month following delivery of service, with the remainder paid the next month (that is, two months following delivery of services).

• Of the funds billed to families, 80 percent are paid in the month following delivery of service; 10 percent are paid the following month; and 10% are not paid at all.

• In January, February, and March, your agency accrues expenses for services provided of $30,000; $36,000; and $27,000 respectively.

Given this information, what would you expect the cash budget to show as direct operating receipts for the month of March?

Q.2 In a sentence or two, explain how you calculated the answer to question (the previous question). Please tell me the steps and logic of the mat

Answer 1

1. Calculation of the direct operating receipts of the month of march:-

2.The steps to calculate the above answer is shown in the above solution,we have computed the above answer in three parts that is amount(60%) received from schools, amount(20%) received from students, and amount(20%) received from doantions etc. then after that there are sub parts in that as shown above.