Problem 7-43 (80-100 min.) Return to


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Hello, I need help answering this question. Please find the information attached. I am willing to negotiate on the price. I need it by Sunday Evening. MBA6158 UNIT 4 ASSIGNMENT 2.xlsx Problem 7-43 (80-100 min.) Return to Assignments Name Section 7-43 Comprehensive Cash Budgeting (Hongren, Sundem, Schatzberg, & Burgstahler, 2012, p. 304) Christine Morrison, treasurer of Salt Lake Light Opera (SLLO), was preparing a loan request to the South Utah National Bank in December 20X4. The loan was necessary to meet the cash needs of the SLLO for year 20X5. In a few short years, the SLLO had established itself as a premier opera company. In addition to its regular subscription series, it started a series for new composers and offered a very popular holiday production. The holiday production was the most financially successful of the SLLO’s activities, providing a base to support innovative productions that were artistically important to the SLLO but did not usually succeed financially. (Hongren, Sundem, Schatzberg, & Burgstahler, 2012, p. 303) Exhibit 7-14 Salt Lake Light Opera Balance Sheets as of December 31 (in thousands of dollars) 20X2 20X3 Assets Cash Accounts receivable Supplies inventory Total current assets Plant and equipment Total assets Liabilities and Equities Bank loan Accounts payable Accrued payroll expenses Mortgage, current Total current liabilities Other payables Mortgage payable, long-term Net assetst Total liabilities and equities *Incudes $32,000 of accrued interest. 20X4 $ $ $ $ $ $ 2,688 2,942 700 6,330 2,643 8,973 $ $ $ $ $ $ 229 3,372 700 4,301 4,838 9,139 $ $ $ $ $ $ 208 4,440 500 5,148 5,809 10,957 $ $ $ $ $ $ $ $ $ 420 472 250 1,142 270 3,750 3,811 8,973 $ $ $ $ $ 720 583 250 1,553 $ $ $ 1,620 780 646 ### 3,296 $ * 1 $ $ $ 3,500 $ 4,086 $ 9,139 $ 3,250 4,411 10,957 The Net assets account for a nonprofit organization is similar to “Stockholders’ equity” for a corporation. 1 Exhibit 7-15 Salt Lake Light Opera Income Statements for the Year Ended December 31 (in thousands of dollars) 20X2 20X3 20X4 Ticket sales $ 3,303 $ 4,060 $ 5,263 Contributions $ 1,041 $ 1,412 $ 1,702 Grants and other revenues $ 1,202 $ 1,361 $ 1,874 Total revenues $ 5,546 $ 6,833 $ 8,839 Production $ 4,071 $ 4,805 $ 6,307 Operations $ 271 $ 332 $ 473 Public relations and community development $ 1,082 $ 1,421 $ 1,734 Total expenses $ 5,424 $ 6,558 $ 8,514 Excess of revenues over expenses $ 122 $ 275 $ 325 Expenses* *Expenses include depreciation of $355, $370, and $470 and general and administrative expenses of $1,549, $1,688, and $2,142 in the years 20X2, 20X3, and 20X4, respectively. In total, the SLLO had done well financially, as shown in Exhibits 7-14 and 7-15. Its profitable operations had enabled it to build its own building and generally acquire a large number of assets. It had at least broken even every year since its incorporation, and management anticipates continued profitable operations. The Corporate Community for the Arts in Salt Lake and several private foundations had made many grants to the SLLO, and such grants are expected to continue. Most recently, the largest bank in town had agreed to sponsor the production of a new opera by a local composer. The SLLO’s director of development, Harlan Wayne, expected such corporate sponsorships to increase in the future. To provide facilities for the Opera’s anticipated growth, SLLO began work on an addition to its building 2 years ago. The new facilities are intended primarily to support the experimental offerings that were becoming more numerous. The capital expansion was to be completed in 20X5; all that remained was acquisition and installation of lighting, sound equipment, and other new equipment to be purchased in 20X5. SLLO had borrowed working capital from South Utah National Bank for the past several years. To qualify for the loans, the SLLO had to agree to the following: Problem 7-43 (80-100 min.) Return to Assignments Name Sec

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