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Wahoo Clinic provided you with the following infor...

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Wahoo Clinic provided you with the following information. Prepare a cash budget for the quarter ending December, 2008 and for the months October through December 2008. Asssumptions: a. Revenues: Actual Patient Projected Patient Projected Patient Revenues 2008 Revenues 2008 Revenues 2009 Jul. $1,400,000 Oct. $1,500,000 Jan $1,700,000 Aug. $1,500,000 Nov. $1,600,000 Feb $1,300,000 Sept. $1,300,000 Dec. $1,700,000 Mar $1,200,000 b. Patient revenues are collected as follows: 60% month of service 30% 1 month after service 10% 2 months after service c. ?Other revenues? include all other revenues including interest earned, and are forecasted to be: October $44,000 November $55,000 December $52,000 d. Projected cash outflows: October $1,199,000 November $1,263,800 December $1,390,600 January $855,000 e. The ending cash balance for September was $200,000. f. Wahoo Clinic requires a month-end cash balance equal to 40% of the following month?s forecasted cash outflows.

 

Paper#2658 | Written in 18-Jul-2015

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