The management of Cook Memorial Hospital needs to prepare a cash budget for July 2010. The following information is available:

a. The cash balance on July 1, 2010, is $300,000.

b. Actual services performed during May and June and projected services for July are:

Credit sales are collected over a two-month period, with 60% collected during the month the service is performed and 40% in the following month.
c. Hospital personnel plan to purchase $80,000 of supplies during July on account. Accounts payable are usually paid one-half in the month of purchase and one-half in the following month. The accounts payable balance on July 1, 2010, is $30,000.
d. Salaries and wages paid during July will be approximately $800,000. (Ignore income and other tax withholdings.)
e. Depreciation on the hospital and equipment for July will be $120,000.
f. A short-term bank loan of $90,000 (including interest) will be repaid in July.
g. All other cash expenses for July will total $86,000.
Prepare the hospital's July cashbudget.

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July May June Cash services (bills paid by individuals as they leave the hospital) Credit services (bills paid by insurance companies and Medicare) $150,000 S 135,000 S 140,000 850,000 1,000,000 1,005,000