39. Cash budget. Jim Zeeman Clinic provided the financial information in Exhibit 5.14. Prepare a cash budget for the clinic for the quarter ending March 20X1.

EXHIBIT 5.14 JIM ZEEMAN CLINIC

Givens

Revenues and Expenses

Given 1 Patient Revenues, 20X0 Given 2 Estimated Patient Revenues 20X1

October $4,000,000 January $4,400,000

November $4,200,000 February $4,600,000

December $4,400,000 March $4,800,000

Given 3 Other Revenues, 20X1 Given 4 Estimated Cash Outflows, 20X1(a)

January $78,000 January $3,000,000

February $120,000 February $3,200,000

March $200,000 March $3,400,000

April $3,000,000

Given 5 Receipt of Payment for Patient Revenues and Services

Current month of service 60%

1st month of prior service 30%

2nd month of prior service 10%

3rd+ months of prior service 0%

Given 6 Ending Cash Balances

December $800,000

20X0

(b) 40%

aCash outflows for the current month.

bThe ending balance for each month as a percentage of the estimated cash outflows for the next month.