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 $5.

If cash is short, the agency may borrow from an endowment fund the amount required to maintain the $5 minimum.

It is anticipated that the year will begin with an $8 cash balance.

Contract revenue is received evenly during the year.

Mental health income is expected to grow by $6 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.

Cash Budget for Tri-County Social Service Agency
(in thousands)
	Quarters
	I	II	III	IV	Year
Cash balance, beginning	$8				$8
Receipts:
Grants	81	97			256
Contracts					100
Mental health income	47				218
Charitable donations	430		380	410
Total cash available		501	508
Less Disbursements:
Salaries and benefits		369			1,767
Office expenses	97		98	52	323
Equipment purchases & maintenance	4	12	4		24
Specific assistance	28	18	21		76
Total disbursements
Excess (deficiency) of cash available over disbursements	(64)			120
Financing:
Borrowings from endowment fund			139
Repayments		(21)
Total financing effects
Cash balance, ending