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 employees' wages and benefits

Supplies

Utilities $($heat and light$)$

Mortgage interest

Miscellaneous

Total cash costs

Cash income

Additional Information

$1.$ Other financial information as of October $31,$ year $9$:

a$.$ Cash in checking account, $$23,000.$

b$.$ Petty cash, $$1,500.$

c$.$ Outstanding mortgage balance, $$936,000$

d$.$ Accounts payable for supplies and utilities unpaid as of October $31,$ year $9,$ and due in November, year $9,$ $$6,800.$

$2.$ The club purchased $$68,000$ worth of sailing equipment during the current fiscal year $($ending October $31,$ year $9).$ Cash of $$38,000$

was paid on delivery, with the balance due on October $1,$ which had not been paid as of October $31,$ year $9.$

$3.$ The club began operations in year $3$ in rental quarters. In October, year $5,$ it purchased its current property $($land and building$)$ for

$$1,524,000,$ paying $$276,000$ down and agreeing to pay $$78,000$ 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 $17$ percent in year $9.$ The board has tentative plans to increase them by $9$ 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 each

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 $9)$ at the same percentage as experienced in year $9($over year

$8.$ Lesson and class employees' wages and benefits will increase to $$613,650.$ The wages and benefits of regular employees and the

manager will increase $17$ percent. Equipment depreciation and supplies, utilities, and miscellaneous expenses are expected to

increase $21$ percent.

Required:

a$.$ Construct a cash budget for year $10$ for Cortez Beach Yacht Club.

Note: Do not round intermediate calculations. Round final answers to the nearest whole dollar amounts.

Year $9$

$ $890,000$

$491,400$

$5,800$

$ $1,387,200$

$90,000$

$398,000$

$408,000$

$35,600$

$47,600$

$54,200$

$5,800$

$ $1,039,200$

$ $348,000$

Year $8$

$ $618,000$

$378,000$

$4,800$

$ $1,000,800$

$ $90,000$

$398,000$

$318,000$

$34,600$

$33,600$

$61,600$

$4,800$

$ $940,600$

$ $60,200$

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 $$68,000$ of new equipment each year and wants to begin a fund to

purchase a $$618,000$ 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.

CORTEZ BEACH YACHT CLUB

Statement of Income $($Cash Basis$)$

For the Year Ended October $31$

$8)$