Tri-County Social Service Agency is a not-for-profit organization in the Midwest. Use the following information to complete the cash budget for the year ending December 31.

• The Board of Trustees requires that Tri-County maintain a minimum cash balance of $11,000.
• If cash is short, the agency may borrow from an endowment fund the amount required to maintain the $11,000 minimum.
• It is anticipated that the year will begin with an $14,000 cash balance.
• Contract revenue is received evenly during the year.
• Mental health income is expected to grow by $5,000 in the second and third quarters; no change is expected in the fourth quarter.

Required:

2. Complete the cash budget for each quarter and the year as a whole.

3. Determine the amount that the agency will owe the endowment fund at year-end.

Complete this question by entering your answers in the tabs below.

• Required 2
• Required 3

Complete the cash budget for each quarter and the year as a whole. (Cash deficiency and repayments should be indicated by a minus sign. Enter your answers in thousands.)

Cash Budget for Tri-County Social Service Agency
(in thousands)
	Quarters
	I	II	III	IV	Year
Cash balance, beginning	$14				$14
Receipts:
Grants	95	98			283
Contracts					80
Mental health income	56				249
Charitable donations	490		250	470
Total cash available		537	392
Less Disbursements:
Salaries and benefits		378			1,789
Office expenses	106		79	64	347
Equipment purchases & maintenance	7	5	7		26
Specific assistance	20	15	23		82
Total disbursements
Excess (deficiency) of cash available over disbursements	(67)			135
Financing:
Borrowings from endowment fund			148
Repayments		(30)
Total financing effects
Cash balance, ending

Requirement 3

Determine the amount that the agency will owe the endowment fund at year-end.

Amount owed to endowment fund