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  • May 13, 2008, 08:34 PM
    leroywash1
    Cash Budgeting—Hospital
    The management of West Valley Memorial Hospital needs to prepare a cash budget for July 2006. The following information is available:
    a. The cash balance on July 1, 2006, is $236,000.
    \ b. Actual services performed during May and June and projected services for July are:
    May June July
    Cash services (bills paid by individuals as they leave the hospital) $110,000 $ 90,000 $120,000
    Credit services (bills paid by insurance companies and Medicare) 900,000 1,000,000 875,000
    Credit sales are collected over a 2-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, 2006, is $35,000
    d. Salaries and wages paid during July will be approximately $600,000. (Ignore income and other tax withholdings.)
    e. . Depreciation on the hospital and equipment for July will be $100,000.
    f. A short-term bank loan of $80,000 (including interest) will be repaid in July.
    g. All other cash expenses for July will total $56,000.
    Prepare the hospital’s July cash budget.
  • May 14, 2008, 08:51 PM
    morgaine300
    Please see our guidelines on submitting homework problems:

    https://www.askmehelpdesk.com/financ...-b-u-font.html

    You don't actually expect that someone is just going to do your budget for you I hope. Seeing you make an effort to do you own work makes people a little more inclined to help you further.
  • Apr 18, 2009, 05:31 PM
    SusieMartin1957

    Prepare the hospital's July cash budget.

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