Appendix E to Part 1024—Arithmetic Steps

Appendix E - Appendix E to Part 1024—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

	Aggregate			pmt	disb	bal	Jun	0	0	0	Jul	130	500	−370	Aug	130	0	−240	Sep	130	360	−470	Oct	130	0	−340	Nov	130	0	−210	Dec	130	700	−780	Jan	130	0	−650	Feb	130	0	−520	Mar	130	0	−390	Apr	130	0	−260	May	130	0	−130	Jun	130	0	0

Step 2—Adjusted Trial Balance

[Increase monthly balances to eliminate negative balances]

	Aggregate			pmt	disb	bal	Jun	0	0	780	Jul	130	500	410	Aug	130	0	540	Sep	130	360	310	Oct	130	0	440	Nov	130	0	570	Dec	130	700	0	Jan	130	0	130	Feb	130	0	260	Mar	130	0	390	Apr	130	0	520	May	130	0	650	Jun	130	0	780

Step 3—Trial Balance With Cushion

	Aggregate			pmt	disb	bal	Jun	0	0	1040	Jul	130	500	670	Aug	130	0	800	Sep	130	360	570	Oct	130	0	700	Nov	130	0	830	Dec	130	700	260	Jan	130	0	390	Feb	130	0	520	Mar	130	0	650	Apr	130	0	780	May	130	0	910	Jun	130	0	1040

II. Example Illustrating Single-Item 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						Taxes			School taxes			pmt	disb	bal	pmt	disb	bal	June	0	0	0	0	0	0	July	100	500	−400	30	0	30	August	100	0	−300	30	0	60	September	100	0	−200	30	360	−270	October	100	0	−100	30	0	−240	November	100	0	0	30	0	−210	December	100	700	−600	30	0	−180	January	100	0	−500	30	0	−150	February	100	0	−400	30	0	−120	March	100	0	−300	30	0	−90	April	100	0	−200	30	0	−60	May	100	0	−100	30	0	−30	June	100	0	0	30	0	0

Step 2—Adjusted Trial Balance

[Increase monthly balances to eliminate negative balances]

	Single-item						Taxes			School taxes			pmt	disb	bal	pmt	disb	bal	Jun	0	0	600	0	0	270	Jul	100	500	200	30	0	300	Aug	100	0	300	30	0	330	Sep	100	0	400	30	360	0	Oct	100	0	500	30	0	30	Nov	100	0	600	30	0	60	Dec	100	700	0	30	0	90	Jan	100	0	100	30	0	120	Feb	100	0	200	30	0	150	Mar	100	0	300	30	0	180	Apr	100	0	400	30	0	210	May	100	0	500	30	0	240	Jun	100	0	600	30	0	270

Step 3—Trial Balance With Cushion

	Single-item						Taxes			School taxes			pmt	disb	bal	pmt	disb	bal	Jun	0	0	800	0	0	330	Jul	100	500	400	30	0	360	Aug	100	0	500	30	0	390	Sep	100	0	600	30	360	60	Oct	100	0	700	30	0	90	Nov	100	0	800	30	0	120	Dec	100	700	200	30	0	150	Jan	100	0	300	30	0	180	Feb	100	0	400	30	0	210	Mar	100	0	500	30	0	240	Apr	100	0	600	30	0	270	May	100	0	700	30	0	300	Jun	100	0	800	30	0	330