Cash budget
Not what you're looking for?
Cash budgeting see attached.
Cash Budgeting?Hospital
The management of West Valley Memorial Hospital needs to prepare a cash budget for July 2006. The following information is available:
a. The cash balance on July 1, 2006, is $236,000.
b. Actual services performed during May and June and projected services for July are:
May June July
Cash services (bills paid by individuals
as they leave the hospital) . . . . . . . . . . . . . $110,000 $ 90,000 $120,000
Credit services (bills paid by insurance
companies and Medicare) . . . . . . . . . . . . . . .. 900,000 1,000,000 875,000
Credit sales are collected over a 2-month period, with 60% collected during the month the service is performed and 40% in the following month.
c. Hospital personnel plan to purchase $80,000 of supplies during July on account. Accounts payable are usually paid one-half in the month of purchase and one-half in the following month. The accounts payable balance on July 1, 2006, is $35,000.
d. Salaries and wages paid during July will be approximately $600,000. (Ignore income and other tax withholdings.)
e. Depreciation on the hospital and equipment for July will be $100,000.
f. A short-term bank loan of $80,000 (including interest) will be repaid in July.
g. All other cash expenses for July will total $56,000.
Prepare the hospital's July cash budget.
Purchase this Solution
Solution Summary
Excel file contains cash budget of West Valley Memorial Hospital.
Purchase this Solution
Free BrainMass Quizzes
Motivation
This tests some key elements of major motivation theories.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Learning Lean
This quiz will help you understand the basic concepts of Lean.