prepare a schedule of cash inflows and outflows for the quarter ended December 2
ID: 2645726 • Letter: P
Question
prepare a schedule of cash inflows and outflows for the quarter ended December 2XX1 (for the months October- December 2XX1) based upon the following:
a. Patient Revenues:
Actual Revenues: July 1,400,000......August. 1,500,000......September. 1,300,000
Estimated Revenues: October.1,500,000....November. 1,600,000.....December. 1,700,000
Estimated Revenues: January. 1,700,000....February. 1,300,000....March...1,200,000
b. Patient Revenues are collected as follows:
Month of service.........60%
1 month after sevice....30%
2 months after service...10%
c. Other Revenues:
October.......$144,000
November...$155,000
December..$152,000
d. Payment of salary and wages 80% of patient revenues
10%of the previous month's revenue
Plus 90% OF the current month's revenue
e. Payment of Other Expenses:
October....$199,000
November..$263,800
December..$390,600
January...$155,000
f. Ending cash Balance 9/30/X1= $200,000
g. Required Cash Balance (Trget Cash):
40% of the next month's forecasted cash outflows
Explanation / Answer
Schedule of Cash Inflow and Outflow:
October November December Beginning Cash Balance 200,000 401,000 560,200 + Collection for August 150,000 - - + Collection for September 390,000 130,000 - + Collection for October 900,000 450,000 150,000 + Collection for November - 960,000 480,000 + Collection for December - - 1,020,000 + Other Revenue 144,000 155,000 152,000 Total Inflow 1,784,000 2,096,000 2,362,200 Outflow: Payment of Salaries and Wages: For September 104,000 - - For October 1,080,000 120,000 - For November - 1,152,000 128,000 For December - - 1,224,000 Payment of Other Expenses 199,000 263,800 390,600 Total Outflow 1,383,000 1,535,800 1,742,600 Ending Cash Balance 401,000 560,200 619,600 Required Balance 614,320 697,040 606,000Related Questions
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