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 is 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 BENCH YACHT CLUB Statement of Income (Cash Basis) For the Year Ended October 31 Year 9 Year & S 730,000 5602,000 479,600 362,000 4,200 3,290 $ 1,204,800 5967,200 $ Cash revenues Annual membership fees Lesson and class fees Miscellaneous Total cash received Cash costs Manager's salary and benefits Regular employees wages and benefits Lesson and class employees wages and benefits Supplies Utilities (heat and light) Mortgage interest Miscellaneous Total cash costs Cash Income 24,000 $74,800 382,000 232,000 392,000 302.ee 32,400 31,400 44,400 30,400 $2,000 51,200 4,200 3,200 981,000 $874,200 223,800 S 93,888 5 5 Additional Information 1 Other financial information as of October 31, year 9 a. Cash in checking account, $15,000 b. Petty cash, $700. Outstanding mortgage balance, $744,000 d. Accounts payable for supplies and utilities unpaid as of October 31. year 9, and due in November, year 9. $5,200 2. The club purchased $52,000 worth of sailing equipment during the current fiscal year fending 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 3. The club began operations in year 3 in rental quarters. In October , year 5, it purchased its current property (lond 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 loon balance each November 1, starting November 1 year 6. 4. 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. 5. Membership fees were increased by 11 percent in year 9. The board hos tentative plans to increase them by 7 percent in year 10 6.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 7 Miscellaneous revenues are expected to grow in year 10 (over year 9) at the same percentage as experienced in year 9 (over year B) 8. Lesson and class employees' wages and benefits will increase to 5605650 The wages and benefits of regular employees and the manager will increase 11 percent Equipment depreciation end supplies, utilities, and miscellaneous expenses are expected to increase 16 percent Required: Constructo cosh budget for year 10 for Cortez Bench Yacht Club (Do not found intermediate calculations. Round final answers to the nearest whole dollar amounts.) CORTEZ BEACH YACHT CLUB Budgeted Statement of Income (Cash Basis) For the Year 10 Cash revenue Total cash received Cash costs Total cash expenses Cash income Additional Cash Flows Total cash expenses Cash income Additional Cash Flows Cash payments: Total cash payments Cash available for working capital and to acquire property Cash revenue Accounts payable balance at 10/31/Year 9 Accounts payable on equipment at 10/31/Year 9 Annual membership fees Beginning cash balance (including petty cash) Cash inflows from income statement Lesson and class emplovee wages and benefits Lesson and dass fees Manager's salary and benefits Miscellaneous Mortgage interest Mortgage payment Planned new equipment purchase Cash revenue Mortgage payment Planned new equipment purchase Regular employees' wages and benefits Supplies Utilities