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Triple - F Health Club ( Family , Fitness, and Fun ) is a not - for - profit, family - oriented health club. The
TripleF Health Club Family Fitness, and Fun is a notforprofit, familyoriented health club. The clubs board of directors is developing plans to acquire more equipment and expand club facilities. The board plans to purchase about $ of new equipment each year and wants to establish a fund to purchase the adjoining property in four or five years. The adjoining property has a market value of about $
The club manager, Jane Crowe, is concerned that the board has unrealistic goals in light of the clubs recent financial performance. She has sought the help of a club member with an accounting background to assist her in preparing a report to the board supporting her concerns.
The member reviewed the clubs records, including this cashbasis income statement:
TRIPLEF HEALTH CLUB
Income Statement Cash Basis
For Years Ended October
Cash revenues:
Annual membership fees $ $
Lesson and class fees
Miscellaneous
Total cash revenues $ $
Cash expenses:
Managers salary and benefits $ $
Regular employees wages and benefits
Lesson and class employees wages and benefits
Towels and supplies
Utilities heat and light
Mortgage interest
Miscellaneous
Total cash expenditures $ $
Increase in cash $ $
Other financial information as of October :
Cash in checking account, $
Petty cash, $
Outstanding mortgage balance, $
Accounts payable arising from invoices for supplies and utilities that are unpaid as of October and due in November $
No other unpaid bills existed on October
The club purchased $ worth of exercise equipment during the current fiscal year. Cash of $ was paid on delivery, with the balance due on October This amount had not been paid as of October An additional $cash of equipment purchases is planned for the coming year.
The club began operations in in rental quarters. In October it purchased its current property land and building for $ paying $ down and agreeing to pay $ plus interest annually on the unpaid loan balance each November starting November
Membership rose in The club has experienced approximately this same annual growth rate since it opened and this rate is expected to continue in the future.
Membership fees increased by in The board has tentative plans to increase these fees by in
Lesson and class fees have not been increased for years. The board policy is to encourage classes and lessons by keeping the fees low. The members have taken advantage of this policy, and the number of classes and lessons has increased significantly each year. The club expects the percentage growth experienced in to be repeated in
Miscellaneous revenues are expected to grow at the same rate as in
Operating expenses expected to increase:
Hourly wage rates and the managers salary:
Towels and supplies, utilities, and miscellaneous expenses:
Required:
Prepare a cash budget for for the TripleF Health Club. Round your "Growth column answers to decimal places and your remaining answers to nearest whole dollar or percentage amount.tableTRIPLEF HEALTH CLUBCash BudgetFor the Year Ending October Growth tablePriceIncreaseOperating Cash Inflows:,,,,,,,,Annual membership fees,$Lesson and class fees,,MiscellaneousTotal Operating Cash Inflows,$$Operating Cash Outflows:Managers salary and benefits,$$Regular employee wages,,Lesson and class employee wages,,Towels and supplies,,Utilities heat and lightsMiscellaneousTotal Operating Cash Outflows,$$Net Operating Cash Flow,$$
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