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 $8,000. • If cash is short, the agency may borrow from an endowment fund the amount required to maintain the $8,000 minimum. It is anticipated that the year will begin with an $11,000 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 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.) Required 3 Cash balance, beginning Receipts: Grants Contracts Mental health income Charitable donations Total cash available Less Disbursements: Salaries and benefits Office expenses Equipment purchases & maintenance Specific assistance Total disbursements Excess (deficit) of cash available over disbursements Financing: Borrowings from endowment fund Repayments TRI-COUNTY SOCIAL SERVICE AGENCY Quarterly and Annual Cash Budget (in thousands) Quarters Total financing effects Cash balance, ending S 11 S 80 20 20 250 381 70 2 20 (46) II 8 $ 70 20 25 350 473 342 4 15 (39) III 8 75 20 30 200 333 71 6 00 18 112 $ IV 8 2888 75 20 30 400 533 50 112 19 S Year 11 300 80 105 1,200 1,696 1,365 256 17 73
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 $8,000. • If cash is short, the agency may borrow from an endowment fund the amount required to maintain the $8,000 minimum. It is anticipated that the year will begin with an $11,000 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 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.) Required 3 Cash balance, beginning Receipts: Grants Contracts Mental health income Charitable donations Total cash available Less Disbursements: Salaries and benefits Office expenses Equipment purchases & maintenance Specific assistance Total disbursements Excess (deficit) of cash available over disbursements Financing: Borrowings from endowment fund Repayments TRI-COUNTY SOCIAL SERVICE AGENCY Quarterly and Annual Cash Budget (in thousands) Quarters Total financing effects Cash balance, ending S 11 S 80 20 20 250 381 70 2 20 (46) II 8 $ 70 20 25 350 473 342 4 15 (39) III 8 75 20 30 200 333 71 6 00 18 112 $ IV 8 2888 75 20 30 400 533 50 112 19 S Year 11 300 80 105 1,200 1,696 1,365 256 17 73
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text: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 $8,000.
If cash is short, the agency may borrow from an endowment fund the amount required to maintain the $8,000 minimum.
It is anticipated that the year will begin with an $11,000 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 balance, beginning
Receipts:
Grants
Contracts
Mental health income
Charitable donations
Total cash available
Less Disbursements:
Salaries and benefits
Office expenses
Equipment purchases & maintenance
Specific assistance
Total disbursements
Excess (deficit) of cash available over disbursements
Financing:
Borrowings from endowment fund
Repayments
TRI-COUNTY SOCIAL SERVICE AGENCY
Quarterly and Annual Cash Budget (in thousands)
Quarters
Total financing effects
Cash balance, ending
S
11 $
80
20
20
250
381
70
2
20
(46)
||
8
70
20
25
350
473
342
4
15
(39)
$
III
8
75
20
30
200
333
71
6
18
112
$
IV
8 $
288
75
20
30
400
533
50
112
Year
11
300
80
105
1,200
1,696
1,365
256
17
73
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