Children’s Best Hope (CBH) provides day-care services to low-income families. CBH bills the state for its services under a service contract. Billings for the first 4 months of 2020 are anticipated to...

Children’s Best Hope (CBH) provides day-care services to low-income families. CBH bills the state for its services under a service contract. Billings for the first 4 months of 2020 are anticipated to be as follows:

CBH finds that it collects 25 percent of the amounts billed in the month of service with the balance collected in the month following service.

CBH is planning to acquire a new building as an additional site for its services in March 2020. The full $250,000 purchase cost of the building will be financed with a mortgage loan. CBH anticipates a February 28, 2020, cash balance of $26,000. CBH anticipates the following expenses and disbursements for the month of March 2020:

Prepare an operating budget, cash budget, and capital budget for CBH for the month of March 2020.