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Triple$-$F Health Club $($Family$,$ Fitness, and Fun$)$ is a not$-$for$-$profit, family$-$oriented health club. The club$$s board of directors is developing plans to acquire more equipment and expand club facilities. The board plans to purchase about $$25,000$ of new equipment each year and wants to establish a fund to purchase the adjoining property in four or five years. The adjoining property has a market value of about $$300,000.$

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 $31$

$20232022$

Cash revenues:

Annual membership fees $ $373,000$ $ $300,000$

Lesson and class fees $237,900183,000$

Miscellaneous $2,6001,500$

Total cash revenues $ $613,500$ $ $484,500$

Cash expenses:

Manager$$s salary and benefits $ $39,000$ $ $36,000$

Regular employees$$ wages and benefits $193,000190,000$

Lesson and class employees$$ wages and benefits $198,000150,000$

Towels and supplies $19,00015,500$

Utilities $($heat and light$)25,00015,000$

Mortgage interest $35,40037,800$

Miscellaneous $3,5001,500$

Total cash expenditures $ $477,500$ $ $445,800$

Increase in cash $ $136,000$ $ $38,700$

Other financial information as of October $31,2023$:

Cash in checking account, $$7,000.$

Petty cash, $$300.$

Outstanding mortgage balance, $$354,000.$

Accounts payable arising from invoices for supplies and utilities that are unpaid as of October $31,2023,$ and due in November $2023,$ $$4,000.$

No other unpaid bills existed on October $31,2023.$

The club purchased $$25,000$ worth of exercise equipment during the current fiscal year. Cash of $$10,000$ was paid on delivery, with the balance due on October $1.$ This amount had not been paid as of October $31,2023.$ An additional $$25,000($cash$)$ of equipment purchases is planned for the coming year.

The club began operations in $2022$ in rental quarters. In October $2022,$ it purchased its current property $($land and building$)$ for $$600,000,$ paying $$120,000$ down and agreeing to pay $$31,500$ plus $9\%$ interest annually on the unpaid loan balance each November $1,$ starting November $1,2023.$

Membership rose $3\%$ in $2023.$ 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 $2023.$ The board has tentative plans to increase these fees by $10\%$ in $2024.$

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 $2023$ to be repeated in $2024.$

Miscellaneous revenues are expected to grow at the same rate as in $2023.$

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 $2024$ for the Triple$-$F Health Club. $($Round your "Growth $\%"$ column answers to $2$ decimal places and your remaining answers to nearest whole dollar or percentage amount.$)$