Group-Case Study-for Revenue Receipt budget and Direct Material Budget

CNH Radiology centre 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, 4000 for

Q4. 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

$90,000 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 Q4 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. The payment will be paid 50% in current quarter and 50% in the next quarter. At the last quarter of

2017, the outstanding accounts payable shows $25,800 balance which will be paid in the 1st quarter of 2018

Please watch the lecture to learn the assignment format----and don`t forget the ``total`` column when you finish the budget table,