I have to take this information and make a cash budget with quarter ending March 20X1.
| Givens | ||||||||
| Revenues and expenses | ||||||||
| Patient | Estimated patient | |||||||
| revenues, 20X0 | revenues, 20X1 | |||||||
| Given 1 | October | $3,000,000 | Given 2 | January | $3,400,000 | |||
| November | $3,200,000 | February | $3,600,000 | |||||
| December | $3,400,000 | March | $3,800,000 | |||||
| Other | Estimated cash | |||||||
| revenues, 20X1 | outflows, 20X1 a | |||||||
| Given 3 | January | $88,000 | Given 4 | January | $2,000,000 | |||
| February | $110,000 | February | $2,200,000 | |||||
| March | $100,000 | March | $2,400,000 | |||||
| April | $2,000,000 | |||||||
| Receipt of payment | ||||||||
| for Patient Revenues and Services | Ending cash balances | |||||||
| Given 5 | Current month of service | 60% | Given 6 | December 20X0 | $800,000 | |||
| 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. | ||||||||
