CNH Radiology center provides services for X-Ray procedures on per patient basis, $100 per patient:

According to the forecast, its patient number in 2018 will be 2000 for Q1, 6000 for Q2, 8000 for Q3, and 4000 for 04. Generally, around 70% of the X-ray procedure revenue will be collected in the current quarter and the rest of 30% will be collected in the next quarter. In the last quarter of 2017, outstanding Accounts Receivable shows S90,000 on its Dec31, 2017 balance sheet.

Four X-Ray films will be used up for each patient. Desired ending inventory is 10% of next quarter's need

2017 04 ending inventory is 400 sheets and the 2018 Q4 desired ending inventory is 1000 sheets.

The Average purchase cost per sheet will be $4.74 for Q1, and $3.919 for Q2. $3.385 for Q3 and $3.624 for Q4 accordingly.

Generally, it takes 1.5 hours for the X-ray technician to complete the X-Ray procedure for each patient.

The hourly pay rate for technicians is an average of $20 per labor hour.

CNH's overhead costs can be generally divided into two categories---variable part and fixed part. Please note its predetermined overhead rate for the year will be $5 per labor hour. According to the data,

Its fixed part of the overhead costs is stable every year-…-$242,400 including $60,000 amortization.

The radiology center's cash balance at the end of 2017 was $42,500. Its office building administrative cost will be Q1 $93,000; Q2 $130,900, Q3 $184,750, Q4 $129,150 respectively. According to the management, Radiology centre will have equipment purchase in 2018, Q1 $89,400, Q2 $66,204, Q3 $1,602, Q4 $29,393.

Please make a cash budget to see if the Radiology center has enough cash-in flow to cover the expenditures.

If the Radio center falls into deficiency, it will have to finance from the bank. The borrowing interest rate is 10%.

If there is a cash excess during the budget period, funds borrowed in previous periods can be repaid. Please Note that the Radiology center must maintain at least keep $40,000 cash balance each quarter just in case 9$, of an emergency.