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

According to the forcast, its patient number in 2018 will be 2000 for Q1, 6000 for Q2, 8000 for Q3, 4000 for

04. Generally, around 70% of the X-ray procedure revenue will be collected in current quarter and rest 30%

will be collected in next quarter. At 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 of patient. Desired ending inventory is 10% of next quarter's need

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

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

accordingly.

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

The hourly pay rate for technician is average $20 per labour 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 are stable every year--$242,400 including $60,000 amortization.

Radiology centre'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 centre has enough cash-in flow to cover the expenditures.

If Radio centre fall 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 Radiology centre must maintain at least keep $40,000 cash balance each quarter just in case 9$,

the emergency.

revenue budget