[LO 10-6] . . are lower by this same percentage Is 10% higher than planned, while volume is decreased by 8. 10-38 Cash Budgeting: Not-for-Profit (NFP) Context contributed by Helen M. Savage) Tri County Social Service Agency is a not-for-profit organization in the Midwest. Use the following informa tion to complete the cash budyet for the year ending December 31: The Board of Trustees requires that Tri-County maintain a minimum cash balance of 58,000 If cash is short, the agency may borrow from an endowment fund the amount required to main- tain the $8.000 minimum. It is anticipated that the year will begin with an $11.000 cash balance. Contract revenue is received evenly during the year. Mental health income is expected to grow by S5,000 in the second and third quarters, no change is expected in the fourth quarter. Required 1. Within the context of a not-for-profit organization, what is an endowment fund? 2. Complete the cash budget for each quarter and the year as a whole, using the template that follows. 3. Determine the amount that the agency will owe the endowment fund at year-end. 4. Does the borrowing indicate a problem? What options would the agency have to increase revenues? 5. Do you think that a requirement to pay interest on the borrowings would have a positive impact on the agency's activities? Why or why not