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Required: 1. Prepare a cash budget for 2021 for the Triple-F Health Golf Club. (Round your Growth column answers to 2 decimal places and your
Required: 1. Prepare a cash budget for 2021 for the Triple-F Health Golf Club. (Round your "Growth" column answers to 2 decimal places and your remaining answers to nearest whole dollar or percentage amount.) TRIPLE-F HEALTH CLUB Cash Budget For the Year Ending October 31, 2021 2020 Growth Price Increase 2021 Operating Cash Inflows: % % % of Total Operating Cash Inflows Operating Cash Outflows: % % Total Operating Cash Outflows Net Operating Cash Flow Non-Operating Cash Outflows: Total Non-Operating Cash Outflow Net Cash Flow Ending Cash Balance Budgeted Ending Cash BalanceRequired information [The foi'iowing information a,o,.oiies to the questions dismayed beiowj Located at about 5 miles north of Nobleton Lakes, Triple-F Health Golf lClub, offers a challenging layout and beautiful views to golf lovers including retirees for improving their physical and mental health. its a not-forprot, family-oriented goff club, the main objective is to become a popular course with visitors to, and residents of the Nobleton Lakes area. To move along with this overall strategy, the club's board of directors is developing plans to purchase more golf equipment and expand club facilities in the course. The board plans to purchase about $23,333 of nev.r equipment each year and also wants to establish a fund to purchase the neighboring property in the next four or ve years. The neighboring property is currently listed at a market value of about $331,333. Emily Shawn, the golfclub manager, has some concerns over this expansion strategy and believes that the board might have some unrealistic goals given the club's recent nancial performance. She recently found out that one of the golf club members, Jack Sally, has taken a Managerial accounting course at 'iork University. Jack has agreed to assist Emily in preparing a report to the board supporting her concerns. Here are the club's records, including this cash-basis income statement, which have been reviewed by Jack: TRIPLE-F HEALTH CLUB Income Statement {[ash Basis} For Tears Ended October 31 {in thousands} 2323 2313 Cash revenues: Annual membership Fees $355.33 $315.35 Lesson and class iees 243.24 134.33 Miscellaneous 2.33 1.53 Total cash revenues $592.24 $531.35 [ash expenses: Manager's salary and benefits 3 33.32 3 33.32 Regular employees' wages and benefits 131.33 131.33 Lesson and class employees' wages and benefits 132.33 151.33 Towels and supplies 13.33 15.53 Utilities [heat and light} 22.33 15.33 Mortgage interest 35.13 32.33 Miscellaneous 2.33 1.53 Total cash expenditures $533.13 $449.32 Increase in cash 5 9?-14 5 51-33 ' . As of October 31, 2020, other financial information is listed below: Petty cash, $620 Cash in checking account, $8,600. Accounts payable are from invoices for the course supplies and utilities that are unpaid as of October 31, 2020, and due in November 2020, $2,820. Outstanding mortgage balance, $347,200. . 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 in the course 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. No other unpaid bills existed on October 31, 2020. The club purchased $26,600 worth of golf equipment during the current fiscal year. Cash of $13,200 was paid on delivery, with the balance due on October 1. This amount had not been paid as of October 31, 2020. An additional $26,600 (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 (course/land and building) for $600,000, paying $120,000 down and agreeing to pay $33,200 plus 9% interest annually on the unpaid loan balance each November 1, starting November 1, 2017. . Operating expenses expected to increase as follows: . Towels and supplies, utilities, and miscellaneous club expenses: 25%. . Hourly wage rates and the manager's salary: 15%
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