5
.docx
keyboard_arrow_up
School
Northern Arizona University *
*We aren’t endorsed by this school
Course
521
Subject
Accounting
Date
Apr 3, 2024
Type
docx
Pages
2
Uploaded by DoctorOtterPerson4041
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 (after deducting the eventual uncollectable)
i.
$4,000,000
b.
Collections of February charges in February
i.
$4,000,000 x 20% = $800,000
c.
Net accounts receivable at the end of March for February billings
i.
$4,000,000 x 40% = $1,600,000
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?
Short-term Reserve = (Cash Expenses x Days of Cash on Hand)/365 (Day in a year)
= ($48,000,000 x 20)/365 = $2,630,136.99
3.
Consider the following cash budgeting example for Mills Pharmaceutical Company. After referring to the information provided below, prepare a cash budget using the cash budget excel spreadsheet for the company for the period July to December 2010. All dollar amounts are in thousands.
Gross sales by month
●
May 2010 $5,000
●
June 5,000
●
July 10,000
●
August 15,000
●
September 20,000
●
October
10,000
●
November 10,000
●
December 5,000
●
January 2011 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 otherwise) for the period are as follows:
●
Wages and salaries: $ 750
●
Rent: 400
●
Insurance: 300
●
Depreciation: 300
●
Other expenses:(insurance): 100
●
Taxes (paid in Sep. and Dec.): 500
●
Payment for capital equipment in Oct.: 1,000
●
Supplies purchased 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 meet a cash shortfall through a short-term loan. (Ignore interest for purposes of this example.) For simplicity in this example, 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.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Questions
Projected revenue for year 20X1 is as follows:
$845,622 in January, $517,629 in February, $528,674 in March,
and $847,032 in April.
Historical net revenues categorized by payer:
Payer
Medicare
Medicaid
Blue
Cross
Private
Payer Revenue Percent
Medicare 8,331,224
Medicaid 12,723,238
Blue Cross 10,763,087
Collection patterns by payer:
Private
Total
Within 1
Month
21%
9%
5%
54%
5,527,687
Within 2
Months
33%
17%
40%
30%
?
Within 3
Months
35%
48%
36%
5%
Within
4 Months
Total
? 100%
? 100%
? 100%
? 100%
How much revenue do we expect to collect in total in March? (Do
arrow_forward
At Inner City Health Care, the total account receivable at the end of May is $100,00 and the monthly receipts total is 75.000, the total accounts receivable ath the end of june is 82.000 and the monthly receipts total is $31.000, the totat accounts receivable at the end of july is $86,000 and the monthly receipts total $20,000; the total accounts receivable at the end of August is $93,000 an the monthly receipts total is $45,000. What is the account receivable ratio for each month? Show your calculations in the space provided. Which month has the healthiest accounts receivable ratio? Why?
arrow_forward
This problem
arrow_forward
Home Infusion provides an average of 10 home health visits a day at an average net charge of
$119 per visit, for $979 in average daily billings (ADB). They provide services approximately 221
days per year. All services are paid by two third-party payers: One pays for half of the billing 24
days after the service is provided and the second pays for the other half of billings in 9 days.
Average cost of debt (i.e. the interest rate on bank loans) is 15%. What is the average accounts
receivable balance? (Do not round intermediate calculations and round your final answer to 2
decimal places. Omit the "$" sign and commas in your response. For example, $12.3456 should
be entered as 12.35.)
arrow_forward
Answer
arrow_forward
A. What are the expected revenues for S2BU for each month, April through September? Revenues are recorded in the month of the occasion.
B. What are the expected cash receipts for each month, April through July?
arrow_forward
Valley Hospital measures the in-patient occupancy of the hospital by determining the number of patient days divided by the number of available bed days in the hospital for a time period. The following in-patient data are available for the months of April, May, and June: April May JuneAdmitted patients 1, 440 1, 860 2, 250 Average length of stay per patient 4.0 days 3.5 days 3.0 daysThe hospital has 200 rooms. One hundred rooms are private and have a single bed per room. The other 100 rooms are semi-private with two beds per room. a. Determine the number of in-patient days for each month.b. Determine the available bed days rate for each month.c. Determine the occupancy rate for each month.d. Interpret the results in (c).
arrow_forward
I need Interest expense per month for February and March, need Borrowing(repayment) for January, February, and March.
Please dont provide solution in an image format thank you
arrow_forward
The Valley Hospital measures the in-patient occupancy of the hospital by determining the number of patient days divided by the number of available bed days in the hospital for a time period. The following in-patient data are available for the months of April, May, and June:
April
May
June
Admitted patients
1,440
1,860
2,250
Average length of stay per patient
4.0
days
3.5
days
3.0
days
The hospital has 200 rooms. One hundred rooms are private and have a single bed per room.The other hundred rooms are semi-private with two beds per room.
a. Determine the number of in-patient days for each month.
Number of in-patient Days
April
fill in the blank 1
May
fill in the blank 2
June
fill in the blank 3
b. Determine the available bed days for each month.
Available Bed Days
April
fill in the blank 4
May
fill in the blank 5
June
fill in the blank 6
c. Determine the occupancy…
arrow_forward
Home Infusion provides an average of 14 home health visits a day at an average net charge of $94 per visit. They provide services approximately 250 days per year. All services are paid by two third-party payers: One pays for 29 percent of the billing 19 days after the service is provided and the second pays for the remaining billings in 29 days. Average cost of debt (i.e. the interest rate on bank loans) is 3%.
What is the average accounts receivable balance?
(Round your final answer to 2 decimal places. Omit the "$" sign and commas in your response. For example, $123,456.789 should be entered as 123456.79.)
Give typing answer with explanation and conclusion
arrow_forward
32. If Adel allows a 2 percent cash discount if collected in the month of sale, it isexpected that 60 percent will be collected in the month of sale and the balance in the
month following. How much will be collected from customers in December under the newpercentages?a. P17,500b. P18,500c. P16,290d. P20,000
arrow_forward
6
arrow_forward
Davis and Davis have expected sales of $490, $465, $450, and $570 for the months of
January through April, respectively. The accounts receivable period is 28 days. What is
the accounts receivable balance at the end of March? Assume a year has 360 days. a.
$450 b. $420 c. $440 d. $426
arrow_forward
Problem #1. You have a Visa credit card account with a 26.49% annual percentage rate calculated on the average daily balance. The billing date is the first day of each month, and the billing cycle is the number of days in that month. Your credit card balance on April 1 was $552. On April 10th you made a $119 purchase. You made another purchase, a $25 gift card, on April 24th. You made a $150 payment on April 29th. Show your work for all parts of the problem.
(a) What is the average daily balance for April?
(b) What is your finance charge on the account as of May 1st?
(c) What is your new credit card balance?
arrow_forward
The pharmacy receives a monthly capitation fee of $535.00. Within a month, it fills 79 prescriptions totaling $389.75. How much profit does the capitation fee provide?
Group of answer choices
$108.52
$283.93
$57.55
$145.25
arrow_forward
Problem #1. You have a Visa credit card account with a 20.98% annual percentage rate calculated on the average daily balance. The billing date is the first day of each month, and the billing cycle is the number of days in that month. Your credit card balance on June 1 was $316. On June 9th you made a $125 purchase. You made another purchase, a $50 gift card, on June 25th. You made a $175 payment on June 28th. (a) What is the average daily balance for June?
(b) What is your finance charge on the account as of July 1st?
(c) What is your new credit card balance?
Work MUST be shown
arrow_forward
Problem #1. You have a Visa credit card account with a
22.75% annual percentage rate calculated on the
average daily balance. The billing date is the first day of
each month, and the billing cycle is the number of days in
that month. Your credit card balance on June 1 was
$307. On June 9th you made a $139 purchase. You made
another purchase, a $150 gift card, on June 25th. You
made a $250 payment on July 27th. Show your work for
all parts of the problem.
(a) What is the average daily balance for June?
(b) What is your finance charge on the account as of July
1st?
(c) What is your new credit card balance?
arrow_forward
Foyert Corporation requires a minimum $7,400 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid at
the end of each month). Any preliminary cash balance above $7,400 is used to repay loans at month-end. The cash balance on
October 1 is $7,400, and the company has an outstanding loan of $3,400. Budgeted cash receipts (other than for loans received) and
budgeted cash payments (other than for loan or interest payments) follow.
Cash receipts
Cash payments
October
$ 23,400
26,100
Beginning cash balance
Add: Cash receipts
Total cash available
Add: Cash payments for
All items excluding interest
All items excluding interest
Total cash payments
Preliminary cash balance
Loan activity
Ending cash balance
Prepare a cash budget for October, November, and December. (Negative balances and Loan repayment amounts (if any) should be
indicated with minus sign. Round your final answers to the nearest whole dollar.)
November
$ 17,400
16,400
Loan balance - Beginning of month…
arrow_forward
Need Help Please Provide answer of General Accounting Question
arrow_forward
2. A hospital has provided you with the following budget information for April
Cash collections P876,000
April 1 cash balance 23.000
Cash disbursements 978,600
The hospital has a policy of maintaining a minimum cash balance of P20,000 and borrows only in P1,000 increments. How much will the hospital borrow in April?
arrow_forward
Benson Memorial hospital cost formula for its wages and salaries is $2,030 per month plus $409
per birth. For the month of December, the hospital planned for activity of 112 births, but the
actual level of activity was 114 births. The actual wages and salaries for the month was $50,800.
The wages and salaries in the planning budget for December would be closest to:
○ $50,800
$47,838
$49,707
$48,656
arrow_forward
I only need the Unpaid Expenses x Percent to Pay help. Thank you.
Schedule of Cash Payments for a Service Company
EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January–March). The Accrued Expenses Payable balance on January 1 is $15,000. The budgeted expenses for the next three months are as follows:
January
February
March
Salaries
$56,900
$ 68,100
$ 72,200
Utilities
2,400
2,600
2,500
Other operating expenses
32,300
41,500
44,700
Total
$91,600
$112,200
$119,400
Other operating expenses include $3,000 of monthly depreciation expense and $500 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 70% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December.
Prepare a schedule of cash payments for…
arrow_forward
pls solve this ques in 10-15 minutes I'll give you multiple upvotes.
arrow_forward
Assume that you start with a balance of $3900 on your credit card.During the first month you charge $400. During the second month you charge $650 and make a payment of $280. Assume that your credit card charges a 29% APR and each month you make the minimum payment of 2.5% of the balance. Complete the following table. Round your answer to the nearest cent.
Month 1
Previous balance- $3900 Finance charge- $94.25 Purchase- 400
Payment ?97.50 New balance?
Month 2
Previous balance- finance charge- purchase- payments- New balance
arrow_forward
The average daily balance of a credit card for the month of February was $1600$1600 and the unpaid balance at the end of the month was $900$900. If the annual percentage rate is 37.2%37.2% of the average daily balance, what is the total balance on the next billing date, March 1?
Round your answer to the nearest cent.
arrow_forward
26. A hospital has provided you with the following budget information for AprilCash collections P876,000April 1 cash balance 23.000Cash disbursements 978,600The hospital has a policy of maintaining a minimum cash balance of P20,000 and borrowsonly in P1,000 increments. How much will the hospital borrow in April?a. P80,000b. P79,600c. P99,000d. P100,000
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Related Questions
- Projected revenue for year 20X1 is as follows: $845,622 in January, $517,629 in February, $528,674 in March, and $847,032 in April. Historical net revenues categorized by payer: Payer Medicare Medicaid Blue Cross Private Payer Revenue Percent Medicare 8,331,224 Medicaid 12,723,238 Blue Cross 10,763,087 Collection patterns by payer: Private Total Within 1 Month 21% 9% 5% 54% 5,527,687 Within 2 Months 33% 17% 40% 30% ? Within 3 Months 35% 48% 36% 5% Within 4 Months Total ? 100% ? 100% ? 100% ? 100% How much revenue do we expect to collect in total in March? (Doarrow_forwardAt Inner City Health Care, the total account receivable at the end of May is $100,00 and the monthly receipts total is 75.000, the total accounts receivable ath the end of june is 82.000 and the monthly receipts total is $31.000, the totat accounts receivable at the end of july is $86,000 and the monthly receipts total $20,000; the total accounts receivable at the end of August is $93,000 an the monthly receipts total is $45,000. What is the account receivable ratio for each month? Show your calculations in the space provided. Which month has the healthiest accounts receivable ratio? Why?arrow_forwardThis problemarrow_forward
- Home Infusion provides an average of 10 home health visits a day at an average net charge of $119 per visit, for $979 in average daily billings (ADB). They provide services approximately 221 days per year. All services are paid by two third-party payers: One pays for half of the billing 24 days after the service is provided and the second pays for the other half of billings in 9 days. Average cost of debt (i.e. the interest rate on bank loans) is 15%. What is the average accounts receivable balance? (Do not round intermediate calculations and round your final answer to 2 decimal places. Omit the "$" sign and commas in your response. For example, $12.3456 should be entered as 12.35.)arrow_forwardAnswerarrow_forwardA. What are the expected revenues for S2BU for each month, April through September? Revenues are recorded in the month of the occasion. B. What are the expected cash receipts for each month, April through July?arrow_forward
- Valley Hospital measures the in-patient occupancy of the hospital by determining the number of patient days divided by the number of available bed days in the hospital for a time period. The following in-patient data are available for the months of April, May, and June: April May JuneAdmitted patients 1, 440 1, 860 2, 250 Average length of stay per patient 4.0 days 3.5 days 3.0 daysThe hospital has 200 rooms. One hundred rooms are private and have a single bed per room. The other 100 rooms are semi-private with two beds per room. a. Determine the number of in-patient days for each month.b. Determine the available bed days rate for each month.c. Determine the occupancy rate for each month.d. Interpret the results in (c).arrow_forwardI need Interest expense per month for February and March, need Borrowing(repayment) for January, February, and March. Please dont provide solution in an image format thank youarrow_forwardThe Valley Hospital measures the in-patient occupancy of the hospital by determining the number of patient days divided by the number of available bed days in the hospital for a time period. The following in-patient data are available for the months of April, May, and June: April May June Admitted patients 1,440 1,860 2,250 Average length of stay per patient 4.0 days 3.5 days 3.0 days The hospital has 200 rooms. One hundred rooms are private and have a single bed per room.The other hundred rooms are semi-private with two beds per room. a. Determine the number of in-patient days for each month. Number of in-patient Days April fill in the blank 1 May fill in the blank 2 June fill in the blank 3 b. Determine the available bed days for each month. Available Bed Days April fill in the blank 4 May fill in the blank 5 June fill in the blank 6 c. Determine the occupancy…arrow_forward
- Home Infusion provides an average of 14 home health visits a day at an average net charge of $94 per visit. They provide services approximately 250 days per year. All services are paid by two third-party payers: One pays for 29 percent of the billing 19 days after the service is provided and the second pays for the remaining billings in 29 days. Average cost of debt (i.e. the interest rate on bank loans) is 3%. What is the average accounts receivable balance? (Round your final answer to 2 decimal places. Omit the "$" sign and commas in your response. For example, $123,456.789 should be entered as 123456.79.) Give typing answer with explanation and conclusionarrow_forward32. If Adel allows a 2 percent cash discount if collected in the month of sale, it isexpected that 60 percent will be collected in the month of sale and the balance in the month following. How much will be collected from customers in December under the newpercentages?a. P17,500b. P18,500c. P16,290d. P20,000arrow_forward6arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College