Draft a quarterly cash budget for the Zoo Extravaganza (ZE) for the first two quarters of the coming year. Use just the information in this problem.
1. Interest is paid on the last day of the year and can be ignored in quarters 1 and 2.
2. Annual expenses are $ 220,000 for administration and ZE staff (other than maintenance workers). Those costs are paid evenly throughout the year.
3. Assume the cash balance on January 1 is $ 5,000 and ZE policy is to have at least a $ 5,000 ending cash balance each quarter.
4. Train expenses are incurred in the same seasonal pattern as admissions and are paid with a one-quarter lag. The budgeted annual expense for this year is $ 20,000. Last year the annual cost for the train was $ 18,000.
5. The cost of the maintenance crew is 20 percent of admissions revenue each quarter. Maintenance workers are paid in the quarter in which they work.
6. The total annual county grant of $ 84,000 is received on the last day of the fourth quarter of the year.
7. ZE collects all admissions in cash at the time of admission. Total admissions revenues are $ 180,000 for the year. The seasonal pattern of admissions is shown in the followingtable.

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Quarter 2 Admissions by Quarter 30% 25% 15% 30%