Assignment Exercise 16-1: Budgeting Select an organization: either from the Case Studies appearing in Chapters 31, 32, 33, 33-A, 33-B or 33-C or from one of the Mini-Case Studies appearing in Chapters 34 and 35. Required 1. Using the organization selected, create a budget for the next fiscal year. Set out the details of all assumptions you needed in order to build this budget. 2. Use the Checklist for Building a Budget" (Exhibit 162) and critique your own budget. 490 CHAPTER 33 Case Study: Metropolis Health System Exhibit 33-C-1 Sample General Hospital 3-Year Retail Pharmacy Profitability Analysis Year 1 Year 2 Year 3 Rx Sales Cost of Goods Sold Gross Margin GM % 2,587,613 2,047,950 539,663 20.9% 2,692,152 2,828,375 2.088,909 2,151,576 603,243 676,799 22.4% 23.9% Expenses Salaries and Wages Benefits Materials and Supplies Contract Services and Fees Depreciation and Amortization Interest Provision for Bad Debts Misc. Expenses Total Expense 192,000 38,400 12.000 14,400 15,333 197,760 39,552 14,400 17,280 15,333 203,693 40,739 17,280 20.736 15,333 25,876 3,600 301,609 26,922 4,320 315,567 28,284 5,184 331,248 Net Income Operating Margin 238,053 9.2% 287,676 10.7% 345,550 12.2% Cash Flow Year 1 Year 2 Year 3 238,053 287,676 345,550 15,333 15,333 15,333 Sources Net Income Depreciation Borrowing Total Sources Uses Capital Purchasing Working Capital Total Uses 253,386 303,010 360,884 130,000 49,789 179,789 376,607 Cash at Beginning of Period Net Cash Activities Cash at Ending of Period 73,597 73,597 73,597 303,010 376,607 360,884 737.490 Volume Year 1 Year 2 Year 3 Number of Prescriptions Sold 55,350 56,457 58,151 Courtesy of Resource Group, Ltd., Dallas, Texas Assignment Exercise 16-1: Budgeting Select an organization: either from the Case Studies appearing in Chapters 31, 32, 33, 33-A, 33-B or 33-C or from one of the Mini-Case Studies appearing in Chapters 34 and 35. Required 1. Using the organization selected, create a budget for the next fiscal year. Set out the details of all assumptions you needed in order to build this budget. 2. Use the Checklist for Building a Budget" (Exhibit 162) and critique your own budget. 490 CHAPTER 33 Case Study: Metropolis Health System Exhibit 33-C-1 Sample General Hospital 3-Year Retail Pharmacy Profitability Analysis Year 1 Year 2 Year 3 Rx Sales Cost of Goods Sold Gross Margin GM % 2,587,613 2,047,950 539,663 20.9% 2,692,152 2,828,375 2.088,909 2,151,576 603,243 676,799 22.4% 23.9% Expenses Salaries and Wages Benefits Materials and Supplies Contract Services and Fees Depreciation and Amortization Interest Provision for Bad Debts Misc. Expenses Total Expense 192,000 38,400 12.000 14,400 15,333 197,760 39,552 14,400 17,280 15,333 203,693 40,739 17,280 20.736 15,333 25,876 3,600 301,609 26,922 4,320 315,567 28,284 5,184 331,248 Net Income Operating Margin 238,053 9.2% 287,676 10.7% 345,550 12.2% Cash Flow Year 1 Year 2 Year 3 238,053 287,676 345,550 15,333 15,333 15,333 Sources Net Income Depreciation Borrowing Total Sources Uses Capital Purchasing Working Capital Total Uses 253,386 303,010 360,884 130,000 49,789 179,789 376,607 Cash at Beginning of Period Net Cash Activities Cash at Ending of Period 73,597 73,597 73,597 303,010 376,607 360,884 737.490 Volume Year 1 Year 2 Year 3 Number of Prescriptions Sold 55,350 56,457 58,151 Courtesy of Resource Group, Ltd., Dallas, Texas