# Prepare a cash budget for the company for the period July to December 2018

Analytical Assignment 1:
Your hospital has billed charges of \$4,000,000 in February. If your collection experience
indicates that 20 percent is paid in the month billed, 40 percent in the second month, 20
percent in the third month, and 5 percent in the fourth month, determine the following
values:
A. Net patient revenue for February
B. Collections of February charges in February
C. Net accounts receivable at the end of March for February billings
Analytical Assignment 2:
You are reviewing your targets for short-term cash reserves next year. You wish to carry
at least twenty days cash on hand. If annual budgeted cash expenses are \$48,000,000,
what amount of short-term cash reserves should be targeted?
Analytical Assignment 3:
10/3/21, 4:32 PM Unit 8: Application Assignment
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You have projected depreciation expense to be \$1,000,000 in the next fiscal year with
year-end accumulated depreciation balances being \$5,000,000. If inflation in medical
equipment is averaging 10 percent per year and you wish to finance only 20 percent of
your replacement needs with debt, what amount of replacement reserves should you
target for year end?
Analytical Assignment 4:
Consider the following cash budgeting example for Silverlake Pharmaceutical Company.
After referring to the information provided below, prepare a cash budget for the company
for the period July to December 2018. All dollar amounts are in thousands.
Gross sales by month
May 2018 \$ 5,000
June 5,000
July 10,000
August 15,000
September 20,000
October 10,000
November 10,000
December 5,000
January
2019
10,000
All sales transactions are on credit, with historical data showing that 30% of current
revenues are collected in the current month, 50% in the next month and 20% in the
second month after sale. Assume that bad debt is negligible.
Except for supplies, assume that operating expenses are paid during the month they are
incurred.
Operating expenses (monthly unless indicated
10/3/21, 4:32 PM Unit 8: Application Assignment
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Submission Requirements
The submission should reflect higher-level cognitive processing (analysis, synthesis, and evaluation),
which is essential for someone being prepared to serve in an operational capacity within the healthcare
and related industry. To earn the maximum number of points, the submission should reflect graduatelevel execution with clear evidence of critical thinking, synthesis of relevant information from credible
sources, and clear mastery of the concepts necessary to successfully execute each component of the
assignment. The submission should not exceed four (4) pages in length, excluding the title and
reference list pages, and explicitly address all required components of this assignment. The document
must be double-spaced, adhere to the APA writing style (7th ed.), and include at least three (3)
references of credible or peer-reviewed sources to support any suppositions and recommendations.
Finally, the document should be prepared as a Microsoft Word document and uploaded to Submit
Assignment.
otherwise) for the period:
Wages and salaries: \$ 750
Insurance 250
Depreciation 300
Other expenses 3,000
Taxes (paid in Sep. and
Dec.)
500
Payment for capital
equipment in Oct.
1,000
Supplies purchases in a month must equal 70% of the projected gross sales for the
following month. Supplies are paid for in the month after purchase.
The corporation must maintain an ending cash balance of \$3,500 each month and meets
a cash shortfall through a short-term loan. (Ignore interest for purposes of this exercise.)
For simplicity in this exercise, assume that excess cash remains as cash (i.e., is not
reinvested). Assume that at the beginning of July, the company had a cash balance of
\$3,500 with no short-term loan outstanding.
After referring to the information provided below, prepare a cash budget for the company
for the period July to December 2018.