Question
HOMEWORK ASSIGNMENT TWO On the basis of what we prepared in class, please prepare a cash flow analysis for the Parks and Recreation Fund and
HOMEWORK ASSIGNMENT TWO
On the basis of what we prepared in class, please prepare a cash flow analysis for the Parks and Recreation Fund and the Motor Vehicle Fund, according to the instructions, using the data provided in the exercise.
Grantsville is a medium sized midwestern town, not quite rural, not quite urban and not quite a willing participant in the twenty-first century. As the new clerk-treasurer, you are eager to bring new aggressiveness to the city administration, so long as none of the Old Guard gets mad.
You suspect the development of a cash plan and a short-term investment strategy for the city would be a non-irritating first step. You further believe that an appropriate start would be with the four two of the four largest funds in the city financial structure: parks and recreation and motor vehicle funds. (You do not need to be concerned about the cumulative capital development fund and the general fund.)
You are encouraged to use the excel spreadsheet resource called Cash Flow Gen Fund Drill for V560. Again, you are required to prepare the cash flows for only the Parks and Recreation and Motor Vehicle Highway Funds.
Fund balances for January 1:
Parks and Recreation Fund $ 62,968
Motor Vehicle Fund $102,015
REVENUES:
Property Tax Collections: Received on May 1 and November 1
Owing to discount for early payment 5/8ths of the collections come in May.
Delinquency has historically be about 2 percent of the levy.
Levy:
Parks and Recreation Fund: $ 718,300.00
Motor Vehicle $ 0.00
Other revenues:
Parks and Recreation Fund
Swimming pool admissions Community auditorium rentals
May $ 800.00 July 4 Freedom Show $ 800.00
June $ 950.00 Labor Day Customs Show $1,500.00
July $1,750.00 Casual Rentals $150 per month
August $2,500.00
September $ 750.00
Motor Vehicle Fund
State shared motor vehicle taxes Traffic Fines remitted monthly $6,500
March 31 $114,000 (Only half of the amount goes to Motor Vehicle)
June 30 $125,000 (Only half of the amount goes to General)
September 30 $115,000
December 31 $113,000
EXPENDITURES:
Payrolls: Assume that there are 26 paydays a year in the bi-weekly system.
For the months of July and October, there will be three paydays. All other months there will be two.
Parks and Recreation Fund
Regular payroll $15,000 bi-weekly
Temporary expenses (payroll) seasonally paid: (From May 15 through September 10) (The payroll pattern is the same as described for all payrolls except for May and September there is only one payday)
Lifeguards, playground help, etc. $20,000 biweekly
Motor Vehicle Fund
Temporary expenses (payroll) seasonally paid: (From May 15 through September 10) (The payroll pattern is the same as described for all payrolls except for May and September there is only one payday)
Summer help. $10,200 biweekly
Vendor payments: Assume there are no more than the two alternative Thursdays a month for the payment of vendors.
Parks and Recreation Fund
Standard vendor payments $4,000 per disbursement
Additional summer vendor seasonally paid: (From May 10 through September 15) (The vendor payment pattern is the same as described for all regular vendor payments except for May and September there is only one Thursday for payment)
Seasonal vendor payments $3,000 per disbursement
Motor Vehicle Fund
Standard vendor payments None
Additional summer vendor seasonally paid: (From May 10 through September 15) (The vendor payment pattern is the same as described for all regular vendor payments except for May and September there is only one Thursday for payment)
Seasonal vendor payments $7,000 per disbursement
Special Expenditures:
Motor Vehicle Fund
Purchase of Dump Truck with sand-salt distributor and snowplow
Paid on October 1: $34,000
Once completed, students are to turn in the cash flow worksheet and the responses to the questions set forth below:
- From these data, prepare a cash flow (budget) for the year. Pleases show and include the year-end balances for the Motor Vehicle Highway Fund and the Park and Recreation Fund.
- Estimate what amounts are available for investment and what fund shortages will occur (if any).
- Identify any management strategies to prevent the fund shortages if possible.
Here are the matrices that you will use:
Cash Flow Study GRANTSVILLE MIDWEST Total: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 SO General Fund Receipts: Disbursements Balance: Property Taxes Parking Building Inspection Fines Total: Payroll Vendors January $ $0 $0.00 $0 $ SO $O $0 February $0 $0.00 $0 $ $0 SO $0 March $0 $0.00 $0 $ $0 $O $0 April $0 $0.00 $0 $ SO $O $0 May $ $0 $0.00 $0 $ $0 SO $0 June $0 $0.00 $0 $ $0 SO $0 July $0 $0.00 $0 $ $O $0 $0 August $0 $0.00 $0 $ SO SO $0 September $0 $0.00 $0 $ $0 SO $0 October $0 $0.00 $0 $ SO SO $0 November $ $0 $0.00 $0 $ $0 SO $0 December $0 $0.00 $0 $ SO SO $0 TOTALS: $0 $0 $0 $0 $0 $0 $O $0 Assumed Levy: S DL GF Approved LEVY: $0 $0 FINAL CASH $ Revised: FY 20XX $0 Net Income $0 Additional Appropriations FY 20XX $0 Revised Appr SO 98% of Levy $0 Estimate of Cash Flow Source: Office of the Clerk-Treasurer General Fund of the Town of GRANTSVILLE Building Fees (Paid end of each quarter) Parking Meters $ 6,000.00 per month July $ Q1 $0 Sept $ 02 $0 October $ Q3 $ December $ Q4 $ Traffic Fines $ per month Property Tax Paid May 1 and November 1 Total levy $ DISCUSSION in CLASS Delingency Adjust $ $0.00 $0.00 $0.00 Cash Flow Study GRANTSVILLE MIDWEST Total: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 SO General Fund Receipts: Disbursements Balance: Property Taxes Parking Building Inspection Fines Total: Payroll Vendors January $ $0 $0.00 $0 $ SO $O $0 February $0 $0.00 $0 $ $0 SO $0 March $0 $0.00 $0 $ $0 $O $0 April $0 $0.00 $0 $ SO $O $0 May $ $0 $0.00 $0 $ $0 SO $0 June $0 $0.00 $0 $ $0 SO $0 July $0 $0.00 $0 $ $O $0 $0 August $0 $0.00 $0 $ SO SO $0 September $0 $0.00 $0 $ $0 SO $0 October $0 $0.00 $0 $ SO SO $0 November $ $0 $0.00 $0 $ $0 SO $0 December $0 $0.00 $0 $ SO SO $0 TOTALS: $0 $0 $0 $0 $0 $0 $O $0 Assumed Levy: S DL GF Approved LEVY: $0 $0 FINAL CASH $ Revised: FY 20XX $0 Net Income $0 Additional Appropriations FY 20XX $0 Revised Appr SO 98% of Levy $0 Estimate of Cash Flow Source: Office of the Clerk-Treasurer General Fund of the Town of GRANTSVILLE Building Fees (Paid end of each quarter) Parking Meters $ 6,000.00 per month July $ Q1 $0 Sept $ 02 $0 October $ Q3 $ December $ Q4 $ Traffic Fines $ per month Property Tax Paid May 1 and November 1 Total levy $ DISCUSSION in CLASS Delingency Adjust $ $0.00 $0.00 $0.00
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started