Modern Medicines sales revenue from providing services are as follows:

January $50,000

February $75,000

March $90,000

Modern Medicines customer payment pattern is 10% at time of service; 70% the following month and 20% the month after that.

What are Modern Medicines cash receipts for Jan, Feb, March, April and May?

Modern Medicines monthly expenses are rent: $5,000 per month; equipment lease $2,000 per month and personnel/supplies that are 70% of that months sales (for example, the personnel/supplies expense for January is 70% of $50,000 or $35,000.)

What are Modern Medicines cash disbursements (expenses paid) for Jan, Feb, & March

Assume that Modern Medicine started January with a cash balance of $100,000. What is their cash balance at the end of January? February?

If at the end of March, Modern Medicines balance sheet shows the following account balances:

Current Assets $300,000

Fixed Assets $200,000

Current Liabilities $150,000

Long Term Liabilities $350,000

Equity $0

What is the amount of Modern Medicines Working Capital?

What is Modern Medicines Net Working Capital amount?