1 25 points The board of directors of the Cortez Beach Yacht Club (CBYC) is developing plans to acquire more equipment for lessons and rentals and to expand club facilities. The board plans to purchase about $60,000 of new equipment esch year and wants to begin e fund to purchase a $610,000 piece of property for club expansion. The club manager is concerned about the club's capability to purchase equipment and expand its facilities. One club member has agreed to help prepare the following financial statements and help the manager ascertain whether the plans are realistic. Additional information follows the financial statements. Skipped CORTEZ BEACH YACHT CLUB Statement of Income (Cash Basis) For the Year Ended October 31 Year 9 Year 8 ebook $ 810,000 $610,000 481,000 370.00 5,800 4,00 $ 1,296,220 $984,202 Print References Cash revenues Annual membership fees Lesson and class fees Miscellaneous Total cash received Cash costs Manager's salary and benefits Regular employees wages and benefits Lesson and class crployees' wages and benefits Supplies Utilities (heat and light) Mortgage interest Miscellaneous Total cash costs Cash income $ 82,200 $ 32,202 390,000 399,202 400,000 310.00 34,000 33,200 46,290 32.100 54,800 53,800 5.000 4,Bee $ 1,011,800 $984,882 $ 284,200 79,202 Additional Information 1. Other financial information as of October 31, year 9: a. Cosh in checking account, $19,000. b. Petty cash, $1,100. c. Outstanding mortgage balance, S840,000. d. Accounts payable for supplies and utilities unpaid as of October 31. year 9. and due in November, year 9. $6,000. 2. The club purchased $60,000 worth of sailing equipment during the current fiscal year (ending October 31, year 9). Cash of $30,000 wes paid on delivery, with the balance due on October 1, which had not been paides of October 31, year 9. 3. The club begon operations in year 3 in rental querters. In October year 5, it purchased its current property land and building) for $1,380,000. paying $260.000 down and agreeing to pay $70,000 plus 5 percent interest annually on the previously unpaid loan balance each November 1, starting November 1. year 6. 4. Membership rose 3 percent during year 9. approximately the same annual rate of increase the club has experienced since it opened and that is expected to continue in the future. 5. Membership fees were increased by 19 percent in year 9. The board has tentative plans to incresse them by 8 percent in year 10. 6. Lesson and class fees have not been increased for three years. The number of classes and lessons has grown significantly esch year, the percentage growth experienced in year 9 is expected to be repeated in year 10. 7. Miscellaneous revenues are expected to grow in year 10 (over year 9) st the same percentage as experienced in year 9 (over year 8). 8. Lesson and class employees' wages and benefits will increase to $609.650. The wages and benefits of regular employees and the manager will increase 19 percent. Equipment depreciation and supplies, utilities, and miscellaneous expenses are expected to increase 24 percent. Required: a. Construct a cash budget for year 10 for Cortez Besch Yacht Club. (Do not round Intermediate calculations. Round final answers to the nearest whole dollar amounts.)