The board of directors of the Cortez Beach Yacht Club $($CBYC$)$ is developing plans to acquire more equipment for lessons and rentals and to expand club facilities. The board plans to purchase about $$52,000$ of new equipment each year and wants to begin a fund to purchase a $$602,000$ piece of property for club expansion.

The club manager is concerned about the club$$s capability to purchase equipment and expand its facilities. One club member has agreed to help prepare the following financial statements and help the manager ascertain whether the plans are realistic. Additional information follows the financial statements.

CORTEZ BEACH YACHT CLUB

Statement of Income $($Cash Basis$)$

For the Year Ended October $31$

Year $9$ Year $8$

Cash revenues

Annual membership fees $ $730,000$ $ $602,000$

Lesson and class fees $470,600362,000$

Miscellaneous $4,2003,200$

Total cash received $ $1,204,800$ $ $967,200$

Cash costs

Manager$$s salary and benefits $ $74,000$ $ $74,000$

Regular employees$$ wages and benefits $382,000382,000$

Lesson and class employees$$ wages and benefits $392,000302,000$

Supplies $32,40031,400$

Utilities $($heat and light$)44,40030,400$

Mortgage interest $52,00051,200$

Miscellaneous $4,2003,200$

Total cash costs $ $981,000$ $ $874,200$

Cash income $ $223,800$ $ $93,000$

Additional Information

Other financial information as of October $31,$ year $9$:

Cash in checking account, $$15,000.$

Petty cash, $$700.$

Outstanding mortgage balance, $$744,000.$

Accounts payable for supplies and utilities unpaid as of October $31,$ year $9,$ and due in November, year $9,$ $$5,200.$

The club purchased $$52,000$ worth of sailing equipment during the current fiscal year $($ending October $31,$ year $9).$ Cash of $$22,000$ was paid on delivery, with the balance due on October $1,$ which had not been paid as of October $31,$ year $9.$

The club began operations in year $3$ in rental quarters. In October, year $5,$ it purchased its current property $($land and building$)$ for $$1,236,000,$ paying $$244,000$ down and agreeing to pay $$62,000$ plus $5$ percent interest annually on the previously unpaid loan balance each November $1,$ starting November $1,$ year $6.$

Membership rose $3$ percent during year $9,$ approximately the same annual rate of increase the club has experienced since it opened and that is expected to continue in the future.

Membership fees were increased by $11$ percent in year $9.$ The board has tentative plans to increase them by $7$ percent in year $10.$

Lesson and class fees have not been increased for three years. The number of classes and lessons has grown significantly each year; the percentage growth experienced in year $9$ is expected to be repeated in year $10.$

Miscellaneous revenues are expected to grow in year $10($over year $9)$ at the same percentage as experienced in year $9($over year $8).$

Lesson and class employees$$ wages and benefits will increase to $$605,650.$ The wages and benefits of regular employees and the manager will increase $11$ percent. Equipment depreciation and supplies, utilities, and miscellaneous expenses are expected to increase $16$ percent.

Required:

Construct a cash budget for year $10$ for Cortez Beach Yacht Club.

Note: Do not round intermediate calculations. Round final answers to the nearest whole dollar amounts.