09 Jun Question HSA 6175 FINANCIAL MANAGEMENT OF HEALTH SYSTEMS
Question
HSA 6175 FINANCIAL MANAGEMENT OF HEALTH SYSTEMS
ASSIGNMENT 5
Consider the following cash budgeting example for Buckeye Pharmaceutical Company. After referring to the information provided below, prepare a cash budget for the company for the period July to December 2010. All dollar amounts are in thousands.
1. 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
2. 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.
3. 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
· 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.
4. 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 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.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.