Tri-County Social Service Agency is a not-for-profit organization in the Midwest
ID: 2533584 • Letter: T
Question
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, 2016. The Board of Trustees requires that Tri-County maintain a minimum cash balance of $21,000. If cash is short, the agency may borrow from an endowment fund the amount required to maintain the $21,000 minimum. (An "endowment fund" is an investment fund set up by a nonprofit entity (e.g., church, university, or hospital] and used either for ongoing operations or for purposes specified by the donor(s) to the fund. Such donations are generally tax deductible for the donors.) Repayment must be made as soon as possible. No interest is charged. It is anticipated that the year 2016 will begin with an $24,000 cash balance. Contract revenue is received evenly during the year. • Mental health income is expected to grow by $6,000 in the second and third quarters; no change is expected in the fourth quarter. Required: 2. Complete the cash budget for 2016, for each quarter and the year as a whole, using the template that follows. (Cash deficiency and repayments should be indicated by a minus sign. Enter your answers in thousands.)Explanation / Answer
Answers
Q1
Q2
Q3
Q4
Year
Cash Balance, beginning
$ 24.00
$ 21.00
$ 21.00
$ 21.00
$ 24.00
Receipts:
Grants
$ 60.00
$ 93.00
$ 17.00
$ 75.00
$ 245.00
Contracts
$ 15.00
$ 15.00
$ 15.00
$ 15.00
$ 60.00
Mental Health
$ 46.00
$ 52.00
$ 58.00
$ 58.00
$ 214.00
Charitable donations
$ 390.00
$ 331.00
$ 350.00
$ 570.00
$ 1,641.00
Total cash available
$ 535.00
$ 512.00
$ 461.00
$ 739.00
$ 2,184.00
Less Disbursements:
Salaries & Benefits
$ 470.00
$ 349.00
$ 444.00
$ 509.00
$ 1,772.00
Office expense
$ 96.00
$ 70.00
$ 94.00
$ 84.00
$ 344.00
Equipment purchases & maintenance
$ 6.00
$ 10.00
$ 5.00
$ 7.00
$ 28.00
Specific Assistance
$ 25.00
$ 17.00
$ 19.00
$ 16.00
$ 77.00
Total disbursements
$ 597.00
$ 446.00
$ 562.00
$ 616.00
$ 2,221.00
Excess (deficiency) of cash available over disbursements
$ (62.00)
$ 66.00
$ (101.00)
$ 123.00
$ (37.00)
Financing:
Borrowings
$ 83.00
$ -
$ 122.00
$ -
$ 205.00
Repayments
$ -
$ (45.00)
$ (102.00)
$ (147.00)
Total financing effects
$ 83.00
$ (45.00)
$ 122.00
$ (102.00)
$ 58.00
Cash balance, ending
$ 21.00
$ 21.00
$ 21.00
$ 21.00
$ 21.00
B
C
D
E
F
G
5566
Q1
Q2
Q3
Q4
Year
5567
Cash Balance, beginning
24
21
21
21
24
5568
Receipts:
5569
Grants
60
93
17
75
=SUM(C5569:F5569)
5570
Contracts
15
15
15
15
=SUM(C5570:F5570)
5571
Mental Health
46
52
58
58
=SUM(C5571:F5571)
5572
Charitable donations
390
331
350
570
=SUM(C5572:F5572)
5573
Total cash available
=SUM(C5567:C5572)
=SUM(D5567:D5572)
=SUM(E5567:E5572)
=SUM(F5567:F5572)
=SUM(G5567:G5572)
5574
Less Disbursements:
5575
Salaries & Benefits
=597-96-6-25
349
=562-94-5-19
=1772-444-349-470
1772
5576
Office expense
96
70
94
84
344
5577
Equipment purchases & maintenance
6
10
5
7
28
5578
Specific Assitance
25
17
19
16
77
5579
Total disbursements
=535+62
=SUM(D5575:D5578)
=461+101
=509+84+7+16
=+SUM(G5575:G5578)
5580
Excess (deficiency) of cash available over disbbursements
-62
=512-446
-101
123
=+G5573-G5579
5581
Financing:
5582
Borrowings
=62+21
0
122
0
=83+122
5583
Repayments
0
-45
-102
=-45-102
5584
Total financing effects
=+C5582+C5583
=+D5582+D5583
=+E5582+E5583
=+F5582+F5583
=+G5582+G5583
5585
Cash balance, ending
=+C5580+C5584
=+D5580+D5584
=+E5580+E5584
=+F5580+F5584
=-37+58
Amount OWED to Endowment Fund at the end year:
Total Borrowed = $205,000
Total Repaid = $ 147,000
Amount Owed = 205000 – 147000 = $58,000
Q1
Q2
Q3
Q4
Year
Cash Balance, beginning
$ 24.00
$ 21.00
$ 21.00
$ 21.00
$ 24.00
Receipts:
Grants
$ 60.00
$ 93.00
$ 17.00
$ 75.00
$ 245.00
Contracts
$ 15.00
$ 15.00
$ 15.00
$ 15.00
$ 60.00
Mental Health
$ 46.00
$ 52.00
$ 58.00
$ 58.00
$ 214.00
Charitable donations
$ 390.00
$ 331.00
$ 350.00
$ 570.00
$ 1,641.00
Total cash available
$ 535.00
$ 512.00
$ 461.00
$ 739.00
$ 2,184.00
Less Disbursements:
Salaries & Benefits
$ 470.00
$ 349.00
$ 444.00
$ 509.00
$ 1,772.00
Office expense
$ 96.00
$ 70.00
$ 94.00
$ 84.00
$ 344.00
Equipment purchases & maintenance
$ 6.00
$ 10.00
$ 5.00
$ 7.00
$ 28.00
Specific Assistance
$ 25.00
$ 17.00
$ 19.00
$ 16.00
$ 77.00
Total disbursements
$ 597.00
$ 446.00
$ 562.00
$ 616.00
$ 2,221.00
Excess (deficiency) of cash available over disbursements
$ (62.00)
$ 66.00
$ (101.00)
$ 123.00
$ (37.00)
Financing:
Borrowings
$ 83.00
$ -
$ 122.00
$ -
$ 205.00
Repayments
$ -
$ (45.00)
$ (102.00)
$ (147.00)
Total financing effects
$ 83.00
$ (45.00)
$ 122.00
$ (102.00)
$ 58.00
Cash balance, ending
$ 21.00
$ 21.00
$ 21.00
$ 21.00
$ 21.00
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