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 $62,000 of new equipment each year and wants to begin a fund to purchase a $612,000 piece of property for club expansion.

The club manager is concerned about the clubs 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	$ 830,000	$ 612,000
Lesson and class fees	483,600	372,000
Miscellaneous	5,200	4,200
Total cash received	$ 1,318,800	$ 988,200
Cash costs
Managers salary and benefits	$ 84,000	$ 84,000
Regular employees wages and benefits	392,000	392,000
Lesson and class employees wages and benefits	402,000	312,000
Supplies	34,400	33,400
Utilities (heat and light)	46,400	32,400
Mortgage interest	55,600	54,000
Miscellaneous	5,200	4,200
Total cash costs	$ 1,019,600	$ 912,000
Cash income	$ 299,200	$ 76,200

Additional Information

Other financial information as of October 31, year 9:

1. Cash in checking account, $20,000.
2. Petty cash, $1,200.
3. Outstanding mortgage balance, $864,000.
4. Accounts payable for supplies and utilities unpaid as of October 31, year 9, and due in November, year 9, $6,200.
5. The club purchased $62,000 worth of sailing equipment during the current fiscal year (ending October 31, year 9). Cash of $32,000 was paid on delivery, with the balance due on October 1, which had not been paid as of October 31, year 9.
6. The club began operations in year 3 in rental quarters. In October, year 5, it purchased its current property (land and building) for $1,416,000, paying $264,000 down and agreeing to pay $72,000 plus 7 percent interest annually on the previously unpaid loan balance each November 1, starting November 1, year 6.
7. Membership rose 5 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.
8. Membership fees were increased by 11 percent in year 9. The board has tentative plans to increase them by 10 percent in year 10.
9. 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.
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).
11. Lesson and class employees wages and benefits will increase to $610,650. 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 15 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.

CORTEZ BEACH YACHT CLUB Budgeted Statement of Income (Cash Basis) For Year 10 Cash revenue Annual membership fees Lesson and class fees Miscellaneous