Not For profit homework-1.docx - 1 Zoo Extravaganza is a...

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1. Zoo Extravaganza is a not-for-profit organization. Zoo Extravaganza took over the county zoo, with the provision that the county would provide a subsidy for its operations. The county provides $7,000 per month. The rest of the zoo’s revenues comes from admission charges, which are as follows: $20 for a family admission (the average family has four people), $3 per child in school groups, $5 per child ticket when not in a school group, and $8 per adult ticket. Each ticket entitles the visitor to ride on the “Train Around the Zoo.” However, only one-third of all visitors actually ride the train. The zoo expects the following number of visitors per month: Visitor Type Monthly Number of Admission Tickets Adult 800 Child 950 Schoolchild 1,000 Families 300 The zoo has the following monthly expenses in four general areas: Administration $ 12,000 Zoo staff $ 10,000 Train rides $ 1 per person who rides the train Maintenance $ 1 per visitor Determine the operating budget per month. Show revenues and expenses by line-item, and show the expected profit or loss. Operating Budget Zoo Extravaganza Visitor Type # of Monthly Admission Price Per Admission Admission Revenues Total Admitted Adult 800 $8.00 $6,400.00 800 Child 950 $5.00 $4,750.00 950 School Child 1000 $3.00 $3,000.00 1000 Families 300 $20.00 $6,000.00 1200 Total $20,150.00 3950
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Budget Revenues County Grant $7,000.00 Admissions $20,150.00 Total Revenues $27,150.00 Expenses Administration $12,000.00 Staff $10,000.00 Train $1,317.00 Maintenance $3,950.00 Total Expenses $27,267.00 Profit/Loss $(117.00) 2. Draft a quarterly cash budget for the Zoo Extravaganza (ZE) for the first two quarters of the coming year. Use just the information in this problem. a) Interest is paid on the last day of the year and can be ignored in quarters 1 and 2. b) Annual expenses are $220,000 for administration and ZE staff (other than maintenance workers). Those costs are paid evenly throughout the year. c) Assume the cash balance on January 1 is $5,000 and ZE policy is to have at least a $5,000 ending cash balance each quarter. d) Train expenses are incurred in the same seasonal pattern as admissions and are paid with a one-quarter lag. The budgeted annual expense for this year is $20,000. Last year the annual cost for the train was $18,000. e) The cost of the maintenance crew is 20 percent of admissions revenue each quarter. Maintenance workers are paid in the quarter in which they work. f) The total annual county grant of $84,000 is received on the last day of the fourth quarter of the year.
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g) ZE collects all admissions in cash at the time of admission. Total admissions revenues are $180,000 for the year. The seasonal pattern of admissions is shown in the following table. Quarter 1 2 3 4 Admissions by Quarter 30% 25% 15% 30% Cash Budget Quarter 1 Quarter2 Beginning Cash $5,000.00 $5,000.00 Cash Receipts $- $- Admissions $54,000.00 $45,000.00 County Grant $- $- Total Cash Available $59,000.00 $50,000.00 Cash Disbursements Admin Staff $55,000.00 $55,000.00 Train Costs $5,400.00 $6,000.00 Maintenance $10,800.00 $9,000.00 Total Disbursements $71,200.00 $70,000.00 Profit/Loss $(12,200.00) $(20,000.00)
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Borrow 17200 25000 Ending Balance $5,000.00 $5,000.00 Note Payable $17,200.00 $42,200.00 3. You are given the following information about We-Save-Um Animal Rescue (WSU): Number of dogs rescued and placed by WSU—600 Average length of stay for a dog—10 days Daily cost of feeding one dog—$.90 Number of veterinary visits per dog—1.2
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