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.

• The Board of Trustees requires that Tri-County maintain a minimum cash balance of $11,000.
• If cash is short, the agency may borrow from an endowment fund the amount required to maintain the $11,000 minimum.
• It is anticipated that the year will begin with an $14,000 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 Budget for Tri-County Social Service Agency (in thousands) Quarters I II III IV Year Cash balance, beginning $14 $14 Receipts: Grants 95 98 283 Contracts 80 Mental health income 56 249 Charitable donations 490 250 470 Total cash available 537 392 Less Disbursements: Salaries and benefits 378 1,789 Office expenses 106 79 64 347 Equipment purchases & maintenance 7 5 7 26 Specific assistance 20 15 23 82 Total disbursements Excess (deficiency) of cash available over disbursements (67) 135 Financing: Borrowings from endowment fund 148 Repayments (30) Total financing effects Cash balance, ending

Requirement 3

Determine the amount that the agency will owe the endowment fund at year-end.

	Amount owed to endowment fund

Answer 1

Cash Budget for Tri-County Social Service Agency
(in thousands)
	Quarters
	I	II	III	IV	Year
Cash balance, beginning	$14	11	11	11	$14
Receipts:
Grants	95	98	45[392-250-66-20-11]7	45[612-11-20-66-470]11	283
Contracts	20[80/4]	20	20	20	80
Mental health income	56	61[56+5]	66[61+5]	66	249
Charitable donations	490	347[537-11-98-20-61]4	250	470	1557
Total cash available	675[14+95+20+56+490]1	537	392	612[477+135]10	2183
Less Disbursements:
Salaries and benefits	609[ 742-106-7-20]3	378	420[529-79-7-23]10	382[1789-420-378-609]	1,789
Office expenses	106		79	64	347
Equipment purchases & maintenance	7	5	7	7[26-7-5-7]	26
Specific assistance	20	15	23	24[82-23-15-20]	82
Total disbursements	742[675+67] 2	496[537-41]6 as there is excess disbursemen is lesser than cash available	529 [392+137]9	477[382+64+7+24]	2244 [742+496+529+477]
Excess (deficiency) of cash available over disbursements	(67)	41[30+11]530repaid to keep 11 minimum balance so excess is	(137) as there is borrowing there will defficiency of [148-11] 8	135	(61)
Financing:
Borrowings from endowment fund	78(67+11minimum balance)		148		226
Repayments		(30)		(124)[135-11]	(154)
Total financing effects	78	(30)	148	(124)	72
Cash balance, ending	11	11	11	11	11

Amount owed to endowment fund

=78 borrowed in q1 - 30repaid in q2 +148bvorrowed in q3-124 repaid in q4

72$ (in thousands)

=72000$