25% of Hilltop Clinic patients pay at the time of service, 50% pay the following month (30 days), 25% pay the second month (60 days) following the service.

Hilltops recent and projected sales are:

November $500,000

December $300,000

January $500,000

February $400,000

March $600,000

April $700,000

May $500,000

Hilltops expenses are:

Rent 10,000/ month

Utilities 1,000/month

4 Nurses 80,000/year each

3 Administrators 45,000/year each

4 physicians 200,000/year each

Supplies 10% of the previous months sales

All fixed expenses are paid monthly.

A) Create a cash budget for Hilltop for January through May 2023. Assume Januarys starting cash balance is $150,000.

B) What would the impact on the cash budget be if all (100%) of the patients pay the following month from service?