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

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 $$67,200.$

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 $$11,200$ per month.

Facilities: Monthly facility costs, including depreciation of $$4,000,$ total $$24,000.$

the end of August.

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

claims filed and paid the balance two months after services are rendered.

May $30$ status: At the end of May, the clinic had $$24,000$ in cash and supplies costing $$8,000.$

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.

Part $1$