a$.$ Prepare a supplies purchases budget for June, July, and August with a total column.

Note: Do not use any negative signs with your answers.

$\backslash$table$[[\backslash$table$[[$Wauconda Medical Center Outpatient Clinic$],[$Supplies Purchases Budget$],[$For June, July, and August$]]],[,$June,,July,,August,,Total,$],[$Required for patient visits,$$,0,$$$,$b$,$$$,,$$$,0],[$Desired ending inventory,,$0,0,,,0,,0],[$Total requirements,,$0,0,,,0,,0],[$Less beginning inventory,,$0,0,,,0,8,0],[$Purchases$,$$$,0,$$$,),$$$,0,$$$,0]]$

b$.$ Prepare a revenue and expense budget for June, July, and August with a total column.

Note: Do not use any negative signs with your answers.

$\backslash$table$[[\backslash$table$[[$Wauconda Medical Center Outpatient Clinic$],[$Revenue and Expense Budget$],[$For June, July, and August$]]],[$Patient visits,$0,0,0,1],[$Average bill per patient,$$$$75,$$$75,$$$75,$$$79$

Budgeting Purchases, Revenues, Expenses, and Cash in a Service Organization

Wauconda Medical Center is located in a summer resort community. During the summer months $($June through August$),$ the center operates an outpatient clinic for the treatment of minor injuries and illnesses. The clinic is administered as a separate department within the hospital. It has its own staff and maintains its own financial records. All patients requiring extensive or intensive care are referred to other hospital departments.

An analysis of past operating data for the outpatient clinic reveals the following:

Staff: Seven full$-$time employees with total monthly salaries of $$75,600.$

On a monthly basis, one additional staff member is hired for every $500$ budgeted patient visits in excess of $3,000,$ at a cost of $$12,600$ per month.

Facilities: Monthly facility costs, including depreciation of $$4,500,$ total $$27,000.$

Supplies: The supplies expense averages $$20$ per patient visit. The center maintains an end$-$of month supplies inventory equal to $10\%$ of the predicted needs of the following month, with a minimum ending inventory of $$7,200,$ which is also the desired inventory at the end of August.

Additional variable patient costs, such as medications, are charged directly to the patient by the hospital pharmacy.

Payments: All staff and maintenance expenses are paid in the month the cost is incurred. Supplies are purchased at cost directly from the hospital with an immediate transfer of cash from the clinic cash account to the hospital cash account.

Collections: The average bill for services rendered is $$75.$ Of the total bills, $40\%$ are paid in cash at the time the service is rendered, $10\%$ are never paid, and the remaining $50\%$ are covered by insurance. In the past, insurance companies have disallowed $30\%$ of the claims filed and paid the balance two months after services are rendered.

May $30$ status: At the end of May, the clinic had $$27,000$ in cash and supplies costing $$9,000.$

Budgeted patient visits for next summer are as follows:

$\backslash$table$[[$Month Patient Visits,$],[$June$,5,400],[$July$,6,300],[$August$,8,100]]$

Required

For the Wauconda Outpatient Clinic: