Triple-F Health Club (Family, Fitness, and Fun) is a not-for-profit family-oriented health club. The club's board...
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Triple-F Health Club (Family, Fitness, and Fun) is a not-for-profit family-oriented health club. The club's board of directors is developing plans to acquire more equipment and to expand club facilities. The board plans to purchase about $25,000 of new equipment each year and wants to establish a fund to purchase the adjoining property in four or five years. The adjoining property has a market value of about $300,000. The Triple-F Health Club's board of directors currently prepares the annual budget themselves without input from Jane and the six department managers and then allocates the budgeted dollars to each department. As part of your report, Jane would like you to discuss the advantages and disadvantages having Jane and department managers participate in the annual budget process. Jane and the department managers would prepare their own department budgets as a basis for developing Tripel-F's annual budget in comparison to the current process where they have no input to the annual budget. The club manager, Jane Crowe, is concerned that the board has unrealistic goals in light of the club's recent financial performance. She has sought the help of a club member with an accounting background to assist her in preparing a report to the board supporting her concerns. The member reviewed the club's records, including the cash-basis income statement in Appendix A. Required Jane would like you to prepare a cash budget for 2024 for the Triple-H Health Club and explain any operating problems that this budget discloses for the Triple-H Health Club. Is Jane Crowe's concern that the board's goals are unrealistic justified? Triple-F Health Club (Family, Fitness, and Fun) is a not-for-profit family-oriented health club. The club's board of directors is developing plans to acquire more equipment and to expand club facilities. The board plans to purchase about $25,000 of new equipment each year and wants to establish a fund to purchase the adjoining property in four or five years. The adjoining property has a market value of about $300,000. The Triple-F Health Club's board of directors currently prepares the annual budget themselves without input from Jane and the six department managers and then allocates the budgeted dollars to each department. As part of your report, Jane would like you to discuss the advantages and disadvantages having Jane and department managers participate in the annual budget process. Jane and the department managers would prepare their own department budgets as a basis for developing Tripel-F's annual budget in comparison to the current process where they have no input to the annual budget. The club manager, Jane Crowe, is concerned that the board has unrealistic goals in light of the club's recent financial performance. She has sought the help of a club member with an accounting background to assist her in preparing a report to the board supporting her concerns. The member reviewed the club's records, including the cash-basis income statement in Appendix A. Required Jane would like you to prepare a cash budget for 2024 for the Triple-H Health Club and explain any operating problems that this budget discloses for the Triple-H Health Club. Is Jane Crowe's concern that the board's goals are unrealistic justified?
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Answer rating: 100% (QA)
Operating Cash Inflows Annual Membership Fees 355000 15 379500 Lesson and Class Fees 234000 3... View the full answer
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
Posted Date:
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