Appendix E—Arithmetic Steps

I. Example Illustrating Aggregate Analysis

Assumptions

Disbursements:

$360 for school taxes disbursed on September 20

$1,200 for county property taxes:

$500 disbursed on July 25

$700 disbursed on December 10

Cushion: One-sixth of estimated annual disbursements

Settlement: May 15

First Payment: July 1

Step 1—Initial Trial Balance

  Single-item
TaxesSchool taxes
pmtdisbbalpmtdisbbal
June000000
July100500−40030030
August1000−30030060
September1000−20030360−270
October1000−100300−240
November10000300−210
December100700−600300−180
January1000−500300−150
February1000−400300−120
March1000−300300−90
April1000−200300−60
May1000−100300−30
June100003000

 

Step 2—Adjusted Trial Balance

[Increase monthly balances to eliminate negative balances]

  Single-item
TaxesSchool taxes
pmtdisbbalpmtdisbbal
Jun0060000270
Jul100500200300300
Aug1000300300330
Sep1000400303600
Oct100050030030
Nov100060030060
Dec100700030090
Jan1000100300120
Feb1000200300150
Mar1000300300180
Apr1000400300210
May1000500300240
Jun1000600300270

 

Step 3—Trial Balance With Cushion

  Single-item
TaxesSchool taxes
pmtdisbbalpmtdisbbal
Jun0080000330
Jul100500400300360
Aug1000500300390
Sep10006003036060
Oct100070030090
Nov1000800300120
Dec100700200300150
Jan1000300300180
Feb1000400300210
Mar1000500300240
Apr1000600300270
May1000700300300
Jun1000800300330