create a cash budget for 2024 on excel for the yogo studio start with known information and vuild the budget based on projected growth and increase
The owners of a yoga studio are considering expanding its facilities by adding additional equipment and expanding its class offerings to include low-impact workouts. The owners plan to purchase about $25,000 of new equipment each year and want to establish a fund to purchase the adjoining property in three to four years. The adjoining property that is being considered has a market value of about $300,000. One of the managers is concerned that these goals are unrealistic because the most recent financial performance does not seem to indicate that this expansion is feasible. This manager has requested your help to examine the company's records and develop a report that will either support or refute the proposed expansion. The yoga studio is primarily a cash business. Below is the most recent income statement: Other financial information as of December 31, 2023: - Cash in checking account, $7,000. - Petty cash, $300. - Outstanding mortgage balance, $360,000. - Accounts payable arising from invoices for supplies and utilities that are unpaid as of December 31, 2023, and due in January 2024, \$2,500. - No other unpaid bills existed on December 31, 2023. - The club purchased $25,000 worth of exercise equipment during the current fiscal year. Cash of $10,000 was paid - Petty cash, $300. - Outstanding mortgage balance, $360,000. - Accounts payable arising from invoices for supplies and utilities that are unpaid as of December 31, 2023, and due in January 2024,$2,500. - No other unpaid bills existed on December 31, 2023. - The club purchased $25,000 worth of exercise equipment during the current fiscal year. Cash of $10,000 was paid on delivery, with the balance due on December 1. This amount had not been paid as of December 31, 2023. An additional $25,000 (cash) of equipment purchases is planned for the coming year. - The club began operations in 2022 in rental quarters. In December 2022, it purchased its current property (land and building) for $600,000, paying $120,000 down and agreeing to pay $30,000 plus 9% interest annually on the unpaid loan balance each January 1 , starting January 1,2024. - Membership rose 3% in 2023. The club has experienced the same annual growth rate since it opened, and this rate is expected to continue in the future. - Membership fees increased by 15% in 2023 . The board has tentative plans to increase these fees by 10% in 2024. - Lesson and class fees have not been increased for 3 years. The board policy is to encourage classes and lessons by keeping the fees low. The members have taken advantage of this policy, and the number of classes and lessons has increased significantly each year. The club expects the percentage growth experienced in 2023 to be repeated in 2024. - Miscellaneous revenues are expected to grow at the same rate as in 2023. - Operating expenses expected to increase: Hourly wage rates and the manager's salary: 15%. Towels and supplies, utilities, and miscellaneous expenses: 25%
