Riverside Country Club has approximately $\mathbf{5 0 0}$ members. Each member has paid a $\$ 10,000$ initiation fee and pays $\$ 100$ a month in dues to remain an active member of the club. The club offers golf, tennis, and food and beverage services. The club is essentially run on a cash basis. Operating data for 1999 are shown below:

Assume the following additional facts for the year 2000 :

a. There are 425 members paying dues, as well as 10 additional new members.

b. Guest fees are 110 percent of 1999 .

c. Golf revenues are 125 percent of 1999 .

d. Tennis revenues are 90 percent of 1999 (due to courts being closed for one month).

e. Food and beverage revenues are the same as 1999 .

f. Operating expenses (golf, tennis, and food and beverage) are up five percent.
g. Administration and maintenance will increase $\$ 40,000$ due to expected repairs.
h. Principal payment of $\$ 50,000$ during 2000 will reduce interest expense by 10 percent for 2000 .
i. Miscellaneous revenues will stay the same; miscellaneous expenses are expected to be $\$ 25,000$.
1. Prepare an annual budget for Riverside for the year 2000 .
2. What is the expected cash flow for Riverside for the year 2000?
3. Interpretive Question: Is Riverside in better shape financially in 2000 as compared to 1999 ? What areas of concern do you see?

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Revenues: Dues' Guest fees. Golf revenues. Tennis revenues. Food and beverage Miscellaneous Expenses: Golf course Tennis courts. Food and bar Riverside Country Club Operating Data For the Year 1999 Administration and maintenance. Interest on debt... Miscellaneous Net operating profit. 'Dues (410 x $1,200 = $492,000; 25 new members x $10,000 $250,000) Guest fees (130 x $50 $6,500) "Interest ($500,000 x 0.10 x 1 year) Maintenance includes $125,000 depreciation on facilities $742,000 6,500 455,000 145,000 325,000 2,500 $1,676,000 $395,000 170,000 272,000 515,000 50,000 27,000 (1,429,000) $ 247,000