I have to take this information and make a cash budget with quarter ending March 20X1.
Givens | ||||||||
Revenues and expenses | ||||||||
Patient | Estimated patient | |||||||
revenues, 20X0 | revenues, 20X1 | |||||||
Given 1 | October | $3,000,000 | Given 2 | January | $3,400,000 | |||
November | $3,200,000 | February | $3,600,000 | |||||
December | $3,400,000 | March | $3,800,000 | |||||
Other | Estimated cash | |||||||
revenues, 20X1 | outflows, 20X1 a | |||||||
Given 3 | January | $88,000 | Given 4 | January | $2,000,000 | |||
February | $110,000 | February | $2,200,000 | |||||
March | $100,000 | March | $2,400,000 | |||||
April | $2,000,000 | |||||||
Receipt of payment | ||||||||
for Patient Revenues and Services | Ending cash balances | |||||||
Given 5 | Current month of service | 60% | Given 6 | December 20X0 | $800,000 | |||
1st month of prior service | 30% | |||||||
2nd month of prior service | 10% | b | 40% | |||||
3rd+ months of prior service | 0% | |||||||
a“Cash Outflows” for the current month. | ||||||||
b The ending balance for each month as a percentage of the estimated cash outflows for the next month. |