For Budget Assignment, Part 3, please complete Assignment Exercise 16-1 on page 560. Use only Chapter 33-C (Create a Budget for the Proposed Addition of a Retail Pharmacy to a Hospital in the Metropolis Health System) as your selection.

Create a budget for Year 4 using the assumptions and your calculations for Year 4 assumptions developed in Budget Assignment, Part 2: Static Budget and the data for Years 1 to 3 on page 490.

Avto Add a Real Pharmacy to a Hospital in the Metropolis Health System 0-C2 Sample General Hospital Retail Pharmacy Proposal Assumptions A Prescription Estimates Rate of Growth/Capture Arrage Net Revenue per Prescription-Yearly Increases 4. Average Cost per Prescription-Yearly increases 191 yais Prescriptions Per Day 151.576 76,793 29.99 ar / 225 230 236 Annual 55,350 56,457 58,151 3.096 23.033 10.739 7.280 9,736 Dear / Sear 2 Par 3 2.0% 2.0% $ 46.75 $ 47.69 $ 1864 5.833 Bad Debt Percentage 1.0% 0.284 184 248 Year 1 Year Years 3.0% 3.0% $ $7.00 $ 38.11 $ 39.25 550 5. Inflation Rates-Per Year Salary and Wages Other Than Prescriptions Benefits as a % of Salaries 3.0% 2.0% 20.0% 3 0 6. Initial Capital Requirements Building Equipment Working Capital Total 80,000 50,000 49,789 179,789 Year 1 Year 2 Year 3 539,663 238,053 603,245 287,676 676,799 345,550 Gross Margin Net Income before Taxes Year 1 Year 2 Year 3 73,597 303,010 376,607 376,607 360,884 787,490 73,597 73,597 Beginning Cash Balance Net Cash Activity Ending Cash Balance Courtesy of Resource Group, Ltd., Dallas, Texas, 560 EXAMPLES AND EXERCISES, SUPPLEMENTAL MATERIALS, AND SOLUTIONS Assignment Exercise 16-1: Budgeting Select an organization: either from the Case Studies appearing in Chapters 31, 32, 33, 38-4. 33-B or 33-C or from one of the Mini-Case Studies appearing in Chapters 34 and 35. Required 1. Using the organization selected, create a budget for the next fiscal year. Set out the details of all assumptions you needed in order to build this budget. 2. Use the "Checklist for Building a Budget" (Exhibit 16-2) and critique your own budget. Assignment Exercise 16-2: Budgeting Find an existing budget from a published source. Detail should be extensive enough to present a challenge. Required 1. Using the existing budget, create a new budget for the next fiscal year. Set out the details of all the assumptions you needed in order to build this budget. 2. Use the Checklist for Building a Budget" (Exhibit 16-2) and critique your own effort Ir the "Checklist for Reviewing a Budget" (Exhibit 16-3) and critique the existing Avto Add a Real Pharmacy to a Hospital in the Metropolis Health System 0-C2 Sample General Hospital Retail Pharmacy Proposal Assumptions A Prescription Estimates Rate of Growth/Capture Arrage Net Revenue per Prescription-Yearly Increases 4. Average Cost per Prescription-Yearly increases 191 yais Prescriptions Per Day 151.576 76,793 29.99 ar / 225 230 236 Annual 55,350 56,457 58,151 3.096 23.033 10.739 7.280 9,736 Dear / Sear 2 Par 3 2.0% 2.0% $ 46.75 $ 47.69 $ 1864 5.833 Bad Debt Percentage 1.0% 0.284 184 248 Year 1 Year Years 3.0% 3.0% $ $7.00 $ 38.11 $ 39.25 550 5. Inflation Rates-Per Year Salary and Wages Other Than Prescriptions Benefits as a % of Salaries 3.0% 2.0% 20.0% 3 0 6. Initial Capital Requirements Building Equipment Working Capital Total 80,000 50,000 49,789 179,789 Year 1 Year 2 Year 3 539,663 238,053 603,245 287,676 676,799 345,550 Gross Margin Net Income before Taxes Year 1 Year 2 Year 3 73,597 303,010 376,607 376,607 360,884 787,490 73,597 73,597 Beginning Cash Balance Net Cash Activity Ending Cash Balance Courtesy of Resource Group, Ltd., Dallas, Texas, 560 EXAMPLES AND EXERCISES, SUPPLEMENTAL MATERIALS, AND SOLUTIONS Assignment Exercise 16-1: Budgeting Select an organization: either from the Case Studies appearing in Chapters 31, 32, 33, 38-4. 33-B or 33-C or from one of the Mini-Case Studies appearing in Chapters 34 and 35. Required 1. Using the organization selected, create a budget for the next fiscal year. Set out the details of all assumptions you needed in order to build this budget. 2. Use the "Checklist for Building a Budget" (Exhibit 16-2) and critique your own budget. Assignment Exercise 16-2: Budgeting Find an existing budget from a published source. Detail should be extensive enough to present a challenge. Required 1. Using the existing budget, create a new budget for the next fiscal year. Set out the details of all the assumptions you needed in order to build this budget. 2. Use the Checklist for Building a Budget" (Exhibit 16-2) and critique your own effort Ir the "Checklist for Reviewing a Budget" (Exhibit 16-3) and critique the existing