Integrative Case 13.65 (Static) Prepare Cash Budget for Service Organization (LO 13-4, 5, 6, 7) 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 $50,000 of new equipment each year and wants to begin a fund to purchase a $600,000 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. Additionel Information 1 Other financial information as of October 31 , year 9 a Cash in checking account, $14,000 b. Petty cash, $600 c. Outstanding mortgage balance, $720.000 d. Accounts payable for supplies and utilites unpaid as of October 31 , year 9, and due in November year 9,$5,000 2. The club purchased $50.000 worth of salling equipment during the current fiscal year (ending October 31, year 9 ) Cash of $20.000 was paid on delivery. with the balance due on October 1 , which had not been poid as of October 31 , year 9 3. The club began operations in yeat 3 in rental quarters. In October. year 5, it purchased its current property (land and building) for $1,200,000, paying $240,000 down and agreeing ta pay $60,000 plus 6 percent interest annually on the previously unpaid loan batance 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 15 percent in year 9 . The board has tentative plans to increase them by 10 percent in year 10 . 6. Lesson and dass fees have not been increased for three years. The number of classes and lessons has grown significanty each year, the percentage growth experienced in year 9 is expected to be iepeated in year to 7. Miscelianeous revenues are expected to grow in year 10 (over year 9 ) at the same percentage as expenienced in year 9 (over year 8). 8. Lesson and dass employees' wages and benetits will increase to $604,650 The wages and benefits of regular employees and the manager will increase 15 percent Equlpment deprecation and supplies, utiities, and miscellaneous expenses are expected to increase 25 peicent. Required: a. Construct a cash budget for year 10 for Cortez Beach Yacht Club. (Do not round intermediote calculations. Round final answers to the nearest whole dollar amounts.)