Show me the steps to solve $\backslash$table$[[$Description$,\backslash$table$[[$Gross$],[$Receivable$]],\backslash$table$[[$January$],[$Collections$]],\backslash$table$[[$February$],[$Collections$]],\backslash$table$[[$March$],[$Collections$]],\backslash$table$[[$Total Collected$],[$Excluding $2\%],[$Discount$]],\backslash$table$[[15\%$ Not$],[$Collected$]],\backslash$table$[[$Remaining$],[$Receivable$],[$Balance$]]],[$November Receivables$],[$December Receivables$],[$January Receivables$],[$February Receivables$],[$March Receivables$],[$Less: $2\%$ discount$],[\backslash$table$[[\backslash$table$[[\backslash$table$[[$Total cash inflows from$],[$receivables$]],,,,,]]]]],[\backslash$table$[[\backslash$table$[[\backslash$table$[[$Cash disbursements for$],[$expenses in month incurred$]],,,,,],[$Casens$,,,,,]]]]],[\backslash$table$[[\backslash$table$[[\backslash$table$[[$Cash disbursements for$],[$expenses in month AFTER$],[$incurred$]],,,,,]]]]],[\backslash$table$[[$Cash Balance change from$],[$operations for month$]]],[$Cash balance, beginning$],[$Cash from financing$],[$Cash balance, ending,,,,,,,$]]$Prepare a cash forecast $($budget$)$ for the months of January, February, and March. Use

the cash budget form on the next page.

Hint: The cash budget form can be completed via the following steps:

Enter the gross receivable for each month in the first column.

Calculate when and in what amounts the $$15,000$ November revenues receivable bal

ance will be collected, and enter this information in the form. Enter the amount that

will not be collected in the $"15\%$ Not Collected" column.

Calculate when and in what amounts the $$25,000$ December revenues receivable bal$-$

ance will be collected, and enter this information in the form. Enter the amount that

will not be collected in the $"15\%$ Not Collected" column.

Calculate when and in what amounts the January, February, and March revenues

will be collected, and enter this information in the form. Enter the amount that will

not be collected in the $"15\%$ Not Collected" column.

Enter the early$-$payment $2$ percent discount in each column to the extent appropriate.

Total the monthly cash inflows for January, February, and March.

Enter the expense cash payments for December, January, February, and March in the

appropriate columns.

Subtract the expense payments from total cash inflows to calculate the monthly cash

change.

Add the monthly cash change to the cash balance, beginning, to calculate the cash

from financing needed to maintain the target cash balance, ending, of $$40,000.$

Total out the various columns to check for mechanical error $\backslash$table$[[$Description$,\backslash$table$[[$Gross$],[$Receivable$]],\backslash$table$[[$January$],[$Collections$]],\backslash$table$[[$February$],[$Collections$]],\backslash$table$[[$March$],[$Collections$]],\backslash$table$[[$Total Collected$],[$Excluding $2\%],[$Discount$]],\backslash$table$[[15\%$ Not$],[$Collected$]],\backslash$table$[[$Remaining$],[$Receivable$],[$Balance$]]],[$November Receivables$],[$December Receivables$],[$January Receivables$],[$February Receivables$],[$March Receivables$],[$Less: $2\%$ discount$],[\backslash$table$[[\backslash$table$[[\backslash$table$[[$Total cash inflows from$],[$receivables$]],,,,,]]]]],[\backslash$table$[[\backslash$table$[[\backslash$table$[[$Cash disbursements for$],[$expenses in month incurred$]],,,,,],[$Casens$,,,,,]]]]],[\backslash$table$[[\backslash$table$[[\backslash$table$[[$Cash disbursements for$],[$expenses in month AFTER$],[$incurred$]],,,,,]]]]],[\backslash$table$[[$Cash Balance change from$],[$operations for month$]]],[$Cash balance, beginning$],[$Cash from financing$],[$Cash balance, ending,,,,,,,$]]$ Case $13\mathrm{.}3$: North Side Hospital

Key concept: Preparing a three$-$month cash forecast $($budget$)$

o make sure sufficient cash is on hand to meet monthly operational needs, North

Side Hospital forecasts its monthly cash flows and short$-$term financing needs.

You have been asked to prepare a cash forecast $($budget$)$ for the months of

January, February, and March of $2016$ using the data provided below:

Patient revenues $($all revenues are initially recorded as a receivable$)$ and expenses

forecasted for the first three months of $2016$ are as follows:

Historical cash collections from patient revenues are as follows:

$50\%$ in month of service

$20\%$ in month after service

$15\%$ in second month after service

$15\%$ uncollectible $($contractual allowances and bad debts$)$

To encourage prompt payment, the hospital gives a $2$ percent discount if payment is

made within the month of service. $($Note: The $2$ percent discount applies to all the

$50$ percent paid in the month of service.$)$

The accounts receivable balance at December $31,2015,$ was $$40,000,$ of which

$$15,000$ represented uncollected November revenues and $$25,000$ represented

uncollected December revenues.

Expenses are paid $50$ percent