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Forld Ltd. operates a waterslide park outside of a major Canadian city. The owner, your uncle, is in nce his brother, who usually prepares the

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Forld Ltd. operates a waterslide park outside of a major Canadian city. The owner, your uncle, is in nce his brother, who usually prepares the operating and cash budgets, has unexpectedly left the . Your mother, has recommended you to help since you are taking an accounting course and will muable skills that can help the family out. Your uncle has provided the following information: park is open from May through September and 60% of its sales are paid in cash, 30% are paid card and 10% are school groups that are billed to the school divisions. Credit card companies payment to Water World's corporate bank account the same day less a 1% processing fee. on fees billed to school groups are paid the following month. All expenses are paid the month the tred. The following projections have been completed to date (this table is also available in Excel ix A): 2021 Operating Year Projections May June July August September 160,000 $ 210,000 $ 300,000 $ 300,000 $ 250,00 (43,200) $ (56,700) $ (81,000) $ (81,000) S (67,50 (54,400) $ (71,400) $ (102,000) S (102,000) $ (85,00 (13,000) $ (13,000) $ (13,000) $ (13,000) $ (13,00 $ S S S ests mg Expenses Eation expense upplies expense ed attendance 9,030 12.900 6,880 12,900 10,7 al supply expense line is incomplete. Your uncle tells you that the park uses balanced chlorine kit tain the pools and slides at a cost of $250 per kit and the number needed is based on anticipated He expects to use 10 in May, 20 in June, 40 in July, 40 in August and 20 in September but alway o have 10% of next month's requirements on hand "just in case". There are 10 kits currently in ery and he would like to have at least 5 kits at the end of the year. tion, repairs are required to the slides in May at an estimated total cost of $125,000 (assume that ified as an expense). He also needs to pay $50,000 per operating month on the long-term, non- - JA SUS 99 16 14 401 15 17 19 Water World Lad operates a waterslide parkutside of a major Cardin city. The owner, your uncle, is in a hind since his brother, who unully prepare the operating and comh budgets, has unexpectedly left the company. Your mother, has roommended you to help since you are taking an accounting course and will have valuable skills that can help the family out. Your uncle has provided the following information: The water park is open from May through September and 60% of its sales are paid in aush, 30% are paid by credit card and 10% we school groups that are billed to the school divisions. Credit card companies deposit payment to Water World's corporate bank account the same day less a 1% processing fee. Admission fees billed to school groups are paid the following month. All expenses are paid the month the are incurred. The following projections have been completed to date (this table is also available in Excel Appendix A): Sales Staff costs Operating Expenses Depreciation expense Pool supplies expense Expected attendance $ $ $ $ 2021 Operating Year Projections May June July 160,000 5 210,000 $ 300,000 $ (43,200) $ (56,700) S (81,000) S (54,400) S (71,400) $ (102,000) S (13,000) $ (13,000) S (13,000) $ August September 300,000 $ 250,00 (81,000) S (67,50 (102.000) 5 (85,00 (13,000) S (13.00 12,900 10,75 6,880 9,030 12.900 The pool supply expense line is incomplete. Your uncle tells you that the park uses balanced chlorine kit to maintain the pools and slides at a cost of $250 per kit and the number needed is based on anticipated usage. He expects to use 10 in May, 20 in June, 40 in July, 40 in August and 20 in September but alwa wants to have 10% of next month's requirements on hand "just in case". There are 10 kits currently in inventory and he would like to have at least 5 kits at the end of the year. In addition, repairs are required to the slides in May at an estimated total cost of $125,000 (assume that is classified as an expense). He also needs to pay $50,000 per operating month on the long-term, non- ALL rch o ! SUS EE NE iOS 15 16 17 13 ? % A $ & 7 3 4 5 6 8 E R T T Y U

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