Cash budget. Jim Zeeman Clinic provided the financial information in Exhibit 5.14. Prepare a cash budget for
Question:
Cash budget. Jim Zeeman Clinic provided the financial information in Exhibit 5.14. Prepare a cash budget for the clinic for the quarter ending March 20X1.
ANNEX 5.14 JIM ZEEMAN CLINIC
Data
Income and expenses
Given 1 Patient Income, 20X0 Given 2 Estimated Patient Income, 20X1
October $4,000,000 January $4,400,000
November $4,200,000 February $4,600,000
December $4,400,000 March $4,800,000
Dice 3 Other income, 20X1 Dice 4 Estimated cash outflows, 20X1(a )
January $78,000 January $3,000,000
February $120,000 February $3,200,000
March $200,000 March $3,400,000
April $3,000,000
Given 5 Receipt of Payment for Income and Services of the Patient
Current month of service 60%
1st month of previous service 30%
2nd month of previous service 10%
3 months or more of prior service 0%
Given 6 ending cash balances
December $800,000
20X0
(b) 40%
aCash outflows for the current month.
bThe ending balance of each month as a percentage of the estimated cash outflows for the following month.
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura