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

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

Staff: Seven full$-$time employees with total monthly salaries of $$58,800$

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 $$9,800$ per month

Facilities: Monthly facility costs, including depreciation of $$3,500,$ total $$21,000.$

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

May $30$ status: At the end of May, the clinic had $$21,000$ in cash and supplies costing $$7,000.$

Budgeted patient visits for next summer are as follows:

Required

For the Wauconda Outpatient Clinic:

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.

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.

c$.$ Prepare a cash budget for June, July, and August with a total column. $($Hint: See requirement d$.)$

Note: Do not use any negative signs with your answers with the exception of a deficit cash balance which should have a negative sign.