Financial Management for Nonprofit Organizations, 3rd Edition

APPENDIX 8BCASE STUDY: TRI-CITY ACADEMY

This case study involves the completion of a cash budget worksheet and a written analysis that interprets the completed cash budget. Your help has been requested on both parts of the case study – a cash budget worksheet and an interpretation write-up. The worksheet template follows this situation description, based very closely on a real-life organization and the difficulties it faced.

Purpose: This case study requires completion of a partially completed cash budget worksheet, as well as interpretation of the completed cash budget. (Purchasers of this book may access an Excel worksheet to use at the website that accompanies this book.) All individual line items of cash inflows and cash outflows for a private 501(c)(3) nonprofit pre-K–12 school, Tri-City Academy, have been completed. (These data are from a real organization, but the name has been changed.) Remaining to be done are some subtotals, totals, and then transferring the totals to the master cash budget worksheet in order to complete the cash budget (see generic template in Section 8.7 of Chapter 8). By completing this worksheet and an interpretive write-up indicating what the cash budget shows us, you are demonstrating your understanding of the mechanics and interpretation of a cash budget.

CASH BUDGET

CONSTRUCTION  First, complete the boxes that are left blank on the cash receipt template at the bottom of the next page. (If you are working from the Excel file, click on ...