Prepare a cash budget

Triple-F Health Club (Family, Fitness, and Fun) is a not-for-profit, family-oriented health club. The club's board of directors is developing plans to acquire more equipment and expand club facilities. The board plans to purchase about $25,300 of new equipment each year and wants to establish a fund to purchas the adjoining property in four or five years. The adjoining property has a market value of about $300,300. The club manager, Jane Crowe, is concerned that the board has unrealistic goals in light of the club's recent financial performance. She has sought the help of a club member with an accounting background to assist her in preparing a report to the board supporting her concerns. The member reviewed the club's records, including this cash-basis income statement TRIPLE-F HEALTH CLUB Income Statement (Cash Basis) For Years Ended October 31 (in thousands) 2020 2019 $355.00 $302.95 235.17180.90 2.00 1.50 5592.17 9484,45 Cash revenues: Annual membership fees Lesson and class fees Miscellaneous Total cash revenues Cash expenses: Manager's salary and benefits Regular employees' wages and benefits Lesson and class employees' wages and benef Towels and supplies Utilities (heat and light) Mortgage interest Miscellaneous Total cash expenditures Tncrease in Cach $36.06 190.3 195.39 16.00 22.88 35.10 .00 $496.85 $ 95.32 5 36.06 .190.30 150.30 15.50 15.00 37.80 1.50 $446.46 $ 37.99 Increase in cash $ 95.32 $ 37.99 Other financial information as of October 31, 2020: Cash in checking account, $7,300. Petty cash, $360. Outstanding mortgage balance, $357.600. Accounts payable arising from invoices for supplies and utilities that are unpaid as of October 31, 2020, and due in November 2020, $2,560. No other unpaid bills existed on October 31, 2020 The club purchased $25,300 worth of exercise equipment during the current fiscal year. Cash of $10,600 was paid on delivery, with the balance due on October 1. This amount had not been paid as of October 31, 2020. An additional $25,300 (cash) of equipment purchases is planned for the coming year. The club began operations in 2016 in rental quarters. In October 2016, it purchased its current property (land and building) for $600,000, paying $120.000 down and agreeing to pay $30,600 plus 9% interest annually on the unpaid loan balance each November 1, starting November 1, 2017 Membership rose 3% in 2020. The club has experienced approximately this same annual growth rate since it opened and this rate is expected to continue in the future Membership fees increased by 15% in 2020. The board has tentative plans to increase these fees by 10% in 2021 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 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 2020 to be repeated in 2021. Miscellaneous revenues are expected to grow at the same rate as in 2020. Operating expenses expected to increase: Hourly wage rates and the manager's salary: 15%. Towels and supplies, utilities, and miscellaneous expenses: 25% Required: 1. Prepare a cash budget for 2021 for the Triple-F Health Club. (Round your "Growth" column ar to 2 decimal places and your remaining answers to nearest whole dollar or percentage amou TRIPLE-F HEALTH CLUB Cash Budget For the Year Ending October 31, 2021 2020 Growth Price Increase 2021 Operating Cash Infloves