Lakeside Country Club has 425 members at the end of 2009 (including 20 new members who joined during the year). Each member has paid a $10,000 initiation fee and pays $100 a month in dues to remain an active member of the club (new members do not pay monthly dues during the first calendar year of their membership). The club offers golf, tennis, and food and beverage services. The club is essentially run on a cash basis. Operating data for 2009 are as follows:

Assume the following additional facts for the year 2010:
a. There are 425 members paying dues, as well as 15 additional new members.
b. Guest fees are 120% of 2009 fees.
c. Golf revenues are 115% of 2009 revenues.
d. Tennis revenues are 90% of 2009 revenues (due to courts being closed for one month).
e. Food and beverage revenues are the same as 2009.
f. Operating expenses (golf, tennis, and food and beverage) are up 5%.
g. Administration and maintenance will increase $45,000 due to expected repairs.
h. Principal payment of $50,000 during 2010 will reduce interest expense by 10% for
2010.
i. Miscellaneous revenues will stay the same; miscellaneous expenses are expected to be $20,000.
Required:
1. Using the same format as the operations budget for 2009, prepare an operations budget for Lakeside for the year 2010.
2. Interpretive Question: Is Lakeside in better shape financially in 2010 as compared to
2009? What areas of concern do yousee?

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Lakeside Country Club Operations Budget For the Year 2009 Revenues: $686,000 6,500 450,000 175,000 310,000 2,500 $1,630,000 Dues'. Guest fees Golf revenues Tennis revenues Food and beverage. Miscellaneous. Expenses: Golf course $390,000 190,000 275,000 525,000 50,000 27,000 (1,457,000) Tennis courts. Food and bar Administration and maintenance Interest on debt Miscellaneous. . $ 173,000 Net operating profit 'Dues (405 x $1,200 - S486,000; 20 new members x S10,000 - $200,000). Guest fees (130 x $50 - S6,500). Maintenance includes S125,000 depreciation on facities. Interest (S500,000 x 0.10 x 1 year).