Run for Your Life (R4YL) is a not-for-profit membership organization for runners in New York City. Its fiscal year begins on July 1. You are preparing budgets for the upcoming fiscal year 2021 and expect to start the year with $20,500 cash on hand.

1. R4YL plans to organize 1 race per month. It anticipates that there will be 1,000 runners per race and each runner will pay an entry fee of $35 on race day. The expected number of races and runners are unchanged from FY20.
2. Related, R4YL will purchase 1 numbered bib for each runner at a cost of $2.50 each during FY21, up from $2.00 per bib in FY20. R4YL pays the bib supplier with a one-month lag.
3. R4YL expects to earn $15,000 per race in revenues from sponsors during FY21. Sponsorship revenues will increase to $18,000 per race in FY22. R4YL receives payments from its sponsors two months in advance of each race.
4. Most of R4YL's staff members are part-time volunteers; however, R4YL employs 3 full-time employees. They will earn an average of $93,600 each in FY21, up from $88,400 in FY20. Full-time employees are paid every two weeks with a two-week lag.
5. R4YL must purchase insurance for each race. The insurance rate will be $5 per runner per race in FY21 and all insurance costs are paid timely.
6. In addition, R4YL will incur $4,500 in storage expenses per month, which are paid timely.
7. On July 1, an R4YL board member will lend the organization $20,000 at a 3% annual interest rate.
8. R4YL will use the loan to purchase 10 new laptops on October 1. Each laptop will have a useful life of 5 years and a salvage value of $250. R4YL will repay the loan in full on June 30, at which time it will also pay the board member any interest owed on the loan.

How would you create an annual operating budget and semiannual cash budget for R4YL for FY21?