Picture Perfect Physician's has 5 employees. FICA Social Security taxes are 6.2% of the first $118,500 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay.FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee.Cumulative pay for the current year for each of its employees are as follows. Compute the amounts in the table for each employee and then total the numerical columns

HM1030: Week 4 Assignment How do you successfully apply the rules of accounting to bank accounts? This assignment helps you apply your knowledge from this week's modules and readings. It is important that graduates understand that a Healthcare Manager have a good working knowledge of banking and basic accounting procedures to ensure they can communicate with the bank officials where the organization may hold accounts and provide banking functions to include deposits, reconciliation of bank statements, features of a check, petty cash funds and payment of invoices. 55 Internal Controls Answer the following questions. 1. What is an internal control? Internal controls are methods put in place by a company to ensure the integrity of financial and accounting information, meet operational and profitability targets, and transmit management policies throughout the organization. 2. What is the importance of an internal control measure? Internal control systems are valuable because they prevent avoidable losses, help managers plan operations, and monitor company and employee performance. 3. How is a bank account considered an internal control measure? Banks help companies control cash by providing detailed and independent records of cash transactions, and are a source of cash financing. Basic bank services such as bank accounts, bank deposits, and checking accounts all help control cash. 4. How does the use of bank accounts improve management's decision making? Managers value the use of bank accounts to monitor and control business activities. Managers use bank accounts to control cash, provide detailed and independent records of cash transactions and are a source of cash transactions, and are a source of cash financing. 5. How does the bank reconciliation reduce the likelihood of theft and fraud? Bank reconciliation matches a company disbursed checks with cleared checks on the company's bank statement. A very careful review based on appropriate control and procedure helps to detect Ultimate Medical Academy. 1 theft and fraud, for instance payment for illegitimate business purpose or even payment to unauthorized person. 6. Explain petty cash fund transactions. Establishing a petty cash fund requires estimating the total amount of small payments likely to be made during a short period. When each disbursement is made the person receiving the payment should sign a petty cash receipt. The receipt is then placed in the petty cash box with the remaining of the money. The fund should be reimbursed when it is nearing zero and at the end of the accounting period when statements are prepared. Simply put petty cash is cash that the business has on hand to cover unexpected expenses. Ultimate Medical Academy. 2 7. Choose from the following list of terms/phrases to best complete the following statements. D. Liquidity C. Outstanding check F. Current assets B. Cash equivalents A. Cash E. Bank reconciliation TERM / PHRASE STATEMENT A. Cash The ______________ category includes currency and coins along with amounts on deposit in bank accounts, checking accounts, and savings accounts. D. Liquidity The term ______________ refers to a company's ability to pay for its near-term obligations. B. Cash equivalents The __________category includes short-term, highly liquid investment assets that are readily convertible to a known cash amount and sufficiently close to their due dates so that their market value is not sensitive to interest rate changes. 8. For each of the following items indicate whether the transaction: a. affects the 'BANK or 'BOOK side of a bank reconciliation and b. how it affects the bank reconciliation; whether it increases/addition (+) or decreases/ subtraction (-). TRANSACTIONS A . B. C . D . E. F. 'BANK' or 'BOOK' SIDE BOOK ADD ('+') or SUBTRACT ('-') + Bank service charges Minimum balance charge book bank - Outstanding checks bank - Credit memo on collection of a note NSF checks book book + - Interest on cash balance (Example) Days' Sales Uncollected Calculations - Picture Perfect Physicians Picture Perfect Physicians reported the following year end information: Net Sales 2016 $710,000 Ultimate Medical Academy. 2017 $1,085,000 3 Accounts Receivable $ 55,000 $ 113,000 9. Use the above information to calculate the Days' Sales Uncollected at the end of 2016. accounts receivable/sales*365 55,000/710,000*365 = 28.3 10. Use the above information to calculate the Days' Sales Uncollected at the end of 2017. AR/sales*365 113,000/1,085,000*365=38.0 Days' Sales Uncollected Calculations Answer the following question. 11. Maxtel had net sales of $4,235 million and ending accounts receivable of $775 million. What is the Days' Sales Uncollected? 775 mil/4,235 mil*365 775 / 4,235 * 35 = 66.8 Promissory Note and Total Interest Answer the following question. 12. A company borrowed $10,000 by signing a 180 day promissory note at 11%. What is the total interest due on the maturity? interest = principle * rate * time $10,000 * 11% * 180/360 = $550 Reflection Reflect on what you have learned this week to help you respond to the question below. You may choose to respond in writing or by recording a video! 13. As a Healthcare Manager, you are often the one to control the entire operations of the business and making sure that the business is receiving revenue for services given. What are some internal Ultimate Medical Academy. 4 controls that you would use to monitor and control business activities? As a healthcare manager some internal controls that I would use is to establish responsibilities. I would assign one person for to a specific task. That way if a problem come up I would know who to go to solve the problem. I would maintain adequate records. Good recordkeeping helps to protect assets and provides a source of information that managers use to monitor activities. I would also insure assets and bond key employees. Doing this would reduce the risk of loss because it discourages theft from bonded employees. Then last, I would perform regular independent reviews. Regular reviews ensure that procedures are being followed and encourages an evaluation of the efficiency and effectiveness of the internal control system. Ultimate Medical Academy. 5