owa Imaging Center provided the financial information in Exhibit 5.15 below. Prepare a cash budget for the quarter ending March 20X1. For Blackboard you will enter your ENDING cash balance for the months of January 20X1, February 20X1, March 20X1, and the Quarter ending March 20X1. I want you to submit your work for this problem by email so I can review the entire document. Exhibit 5-15 Iowa Imaging Center Givens Revenues and Expenses Patient Revenues, 20X0 Estimated Patient Revenues, 20X1 Given 1 October $4,000,000 Given 2 January $4,300,000 November $4,200,000 February $4,350,000 December $4,300,000 March $4,400,000 Other Revenues, 20X1 Estimated Cash Outflows, 20X1a Given 3 January $90,000 Given 4 January $4,250,000 February $120,000 February $4,300,000 March $140,000 March $4,350,000 April $4,400,000 Receipt of Payment for Patient Revenues and Services Ending Cash Balances Given 5 Current month of service 60% Given 6 December 20X0 $700,000 1st month of prior service 30% 2nd month of prior service 10% b 40% 3rd+ months of prior service 0% a "Cash Outflows" for the current month. b The ending balance for each month as a percentage of the estimated cash outflows for the next month.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
owa Imaging Center provided the financial information in Exhibit 5.15 below. Prepare a
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Exhibit 5-15 Iowa Imaging Center |
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Givens |
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Revenues and Expenses |
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Patient Revenues, 20X0 |
Estimated Patient Revenues, 20X1 |
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Given 1 |
October |
$4,000,000 |
Given 2 |
January |
$4,300,000 |
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November |
$4,200,000 |
February |
$4,350,000 |
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December |
$4,300,000 |
March |
$4,400,000 |
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Other Revenues, 20X1 |
Estimated |
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Given 3 |
January |
$90,000 |
Given 4 |
January |
$4,250,000 |
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February |
$120,000 |
February |
$4,300,000 |
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March |
$140,000 |
March |
$4,350,000 |
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April |
$4,400,000 |
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Receipt of Payment |
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for Patient Revenues and Services |
Ending Cash Balances |
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Given 5 |
Current month of service |
60% |
Given 6 |
December 20X0 |
$700,000 |
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1st month of prior service |
30% |
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2nd month of prior service |
10% |
b |
40% |
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3rd+ months of prior service |
0% |
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a "Cash Outflows" for the current month. |
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b The ending balance for each month as a percentage of the estimated cash outflows for the next month. |
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