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The board of directors of the Cortez Beach Yacht Club $($CBYC$)$ is developing plans to acqulre more equipment for lessons and rentals and to expand club facilitles. The board plans to purchase about $$63,000$ of new equlpment each year and wants to begin a fund to purchase a $$613,000$ plece of property for club expansion.

The club manager is concerned about the club's capability to purchase equlpment and expand its facilitles. One club member has agreed to help prepare the following financlal statements and help the manager ascertain whether the plans are reallstic. Additional information follows the financlal statements.

Additional Information

Other financlal Information as of October $31,$ year $9$:

a$.$ Cash in checking account, $$20,500.$

b$.$ Petty cash, $$1,250.$

c$.$ Outstanding mortgage balance, $$876,000.$

d$.$ Accounts payable for supplies and utilitiles unpaid as of October $31,$ year $9,$ and due in November, year $9,$$$6,300.$

$2$ The club purchased $$63,000$ worth of salling equipment during the current fiscal year $($ending October $31,$ year $9).$ Cash of $$33,000$ was paid on delivery, with the balance due on October $1,$ which had not been pald as of October $31,$ year $9.$

The club began operations in year $3$ in rental quarters. In October, year $5,$ It purchased its current property $($land and building$)$ for $$1,434,000,$ paying $$266,000$ down and agreeling to pay $$73,000$ plus $4$ percent Interest annually on the previously unpald loan balance each November $1,$ starting November $1,$ year $6.$

Membership rose $2$ percent during year $9,$ approximately the same annual rate of Increase the club has experlenced since it opened and that is expected to continue in the future.

Membership fees were increased by $12$ percent in year $9.$ The board has tentative plans to Increase them by $11$ percent in year $10.$

Lesson and class fees have not been Increased for three years. The number of classes and lessons has grown significantly each year; the percentage growth experlenced in year $9$ is expected to be repeated in year $10.$

Miscellaneous revenues are expected to grow in year $10($over year $9)$ at the same percentage as experlenced in year $9($over year $8).$

Lesson and class employees' wages and benefits will increase to $$611,150.$ The wages and benefits of regular employees and the manager will increase $12$ percent. Equipment depreclation and supplies, utilitles, and miscellaneous expenses are expected to increase $16$ percent.

Required:

a$.$ Construct a cash budget for year $10$ for Cortez Beach Yacht Club.

Noter Do not round intermediate calculations. Round final answers to the nearest whole dollar amounts.

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