Case 2 are the forecasted annual revenues and expenses for next year, that is revenues of $85,292 (with adjusted interest income) and expenses of $95,300.

Part A: Determine the amount of each expense for each of the five functions.

Part B: 3 new projects are added for next year. Adjust the expense accounts that will be affected by these projects, following the case information.

Current Proposed Q1 Q2 Q3 Q4 Total Revenue

Special Events 8,000 10,400 1,040 6,240 3,120 0 10,400 Contributions 40,000 48,000 9,600 9,600 4,800 24,000 48,000 Grants 40,000 20,000 0 0 0 20,000 20,000 Endowment 5,000 6,000 1,500 1,500 1,500 1,500 6,000 Interest Income 1,600 1,600 400 248 193 51 892 Total Revenue 94,600 86,000 12,540 17,588 9,613 45,551 85,292

Expense

Travel 4,000 4,400 880 880 1,540 1,100 4,400 Special Events 8,000 10,400 2,080 4,160 4,160 0 10,400 Conferences 2,000 2,200 0 0 2,200 0 2,200 Fundraising 6,000 7,200 1,440 2,160 0 3,600 7,200 Insurance 4,000 4,400 4,400 0 0 0 4,400 Newsletter 5,000 6,000 1,500 1,500 1,500 1,500 6,000 Postage 2,000 2,400 600 600 600 600 2,400 Professional Fees 4,500 4,950 3,465 495 495 495 4,950 Publicity 3,000 3,300 825 825 825 825 3,300 Salary 40,000 41,000 10,250 10,250 10,250 10,250 41,000 Supplies 3,500 3,850 963 963 963 963 3,850 Payroll taxes 4,000 4,100 1,025 1,025 1,025 1,025 4,100 Telephone 1,000 1,100 275 275 275 275 1,100 Total Expense 87,000 95,300 27,703 23,133 23,833 20,633 95,300 Surplus 7,600 -9,300 -15,163 -5,544 -14,220 24,918 -10,008 Surplus % 8.74% -9.76%

-10.50% Target Surplus 4,765

Beginning Cash Balance 40,000 24,838 19,293 5,074 Change in Cash Balance -15,163 -5,544 -14,220 24,918 Ending Cash Balance 24,838 19,293 5,074 29,992 Cash / Annual Expense 26.06% 20.24% 5.32% 31.47%