St John til provides a wide range of the board of directorshowed the follow Intra-ortie balloon pump Computed tomographie scanner 400 X-ray equipment 50.000 550.000 Laboratory equipment Total 1.200.000 4.000.000 gathered the following information to be used in preparing an analysis offure cash amount of borrowing if any, necessary on that date. Jill Todd Hospital Controller has The expenditures are planned for October 1.2013, and the board wishes to know the flows. Billings made in the month of service for the first six months of 2013 are Month Actual Amount S January 5.300.000 February 5,300,000 March 5,400,000 April 5,400,000 May 6,000,000 June 6.000.000 Ninety percent of St. John's billings are made to third parties such as Blue Cross, federal or state governments and private insurance companies. The remaining 10% of the billings are made directly to patients. Historical patterns of billing collections are Third Party Billings Direct Patient Billings Month of service 20% 10% Month following service 50% 40% Second month following service 20% Uncollectible 10% 10% Estimated billings for the last six months of 2013 are listed next. Todd expects the same billing and collection patterns that have been experiencing during the first six months of 2013 to continue during the last six months of the year. 40% Month Estimated Amoun. Billing July August September October November December 5,400,000 6.000.000 6,600,000 6.800.000 7,000,000 6.600.000 months and the planned purchases for the last six months of 2013. The following schedule presents the purchases that have been made during the past three Month Amount S April 1,300,000 May 1.450,000 June 1,450,000 July 1,500,000 August 1,800,000 -- September 2,200.000 October 2,350.000 November 2,700,000 December 2,100,000 136 428 July 145000 They Sept. 1.800 on & 4,750,000 All purchases are made on account and accounts payable are remitted in the month following the purchase. Salaries for each month during the remainder of 2013 are expected to be $1,800,000 per month plus 20% of that month's billings. Salaries are paid in the month of service. St. John's monthly depreciation charges are $150,000. St. John incurs interest expenses of S180,000 per month and makes interest payments of $540,000 on the last day of each calendar quarter. Endowment fund income is expected to continue to total $210,000 per month. St. John has a cash balance of $350,000 on July 1, 2013 and has a policy of maintaining a minimum end of month cash balance of 10% of the current month's purchases. St. John Hospital employs a calendar -year reporting period what Required: () Prepare a monthly cash budget for St. John's Hospital for the third quarter of 2013 (ii) Define budgeting and explain its role in the management cycle. St John til provides a wide range of the board of directorshowed the follow Intra-ortie balloon pump Computed tomographie scanner 400 X-ray equipment 50.000 550.000 Laboratory equipment Total 1.200.000 4.000.000 gathered the following information to be used in preparing an analysis offure cash amount of borrowing if any, necessary on that date. Jill Todd Hospital Controller has The expenditures are planned for October 1.2013, and the board wishes to know the flows. Billings made in the month of service for the first six months of 2013 are Month Actual Amount S January 5.300.000 February 5,300,000 March 5,400,000 April 5,400,000 May 6,000,000 June 6.000.000 Ninety percent of St. John's billings are made to third parties such as Blue Cross, federal or state governments and private insurance companies. The remaining 10% of the billings are made directly to patients. Historical patterns of billing collections are Third Party Billings Direct Patient Billings Month of service 20% 10% Month following service 50% 40% Second month following service 20% Uncollectible 10% 10% Estimated billings for the last six months of 2013 are listed next. Todd expects the same billing and collection patterns that have been experiencing during the first six months of 2013 to continue during the last six months of the year. 40% Month Estimated Amoun. Billing July August September October November December 5,400,000 6.000.000 6,600,000 6.800.000 7,000,000 6.600.000 months and the planned purchases for the last six months of 2013. The following schedule presents the purchases that have been made during the past three Month Amount S April 1,300,000 May 1.450,000 June 1,450,000 July 1,500,000 August 1,800,000 -- September 2,200.000 October 2,350.000 November 2,700,000 December 2,100,000 136 428 July 145000 They Sept. 1.800 on & 4,750,000 All purchases are made on account and accounts payable are remitted in the month following the purchase. Salaries for each month during the remainder of 2013 are expected to be $1,800,000 per month plus 20% of that month's billings. Salaries are paid in the month of service. St. John's monthly depreciation charges are $150,000. St. John incurs interest expenses of S180,000 per month and makes interest payments of $540,000 on the last day of each calendar quarter. Endowment fund income is expected to continue to total $210,000 per month. St. John has a cash balance of $350,000 on July 1, 2013 and has a policy of maintaining a minimum end of month cash balance of 10% of the current month's purchases. St. John Hospital employs a calendar -year reporting period what Required: () Prepare a monthly cash budget for St. John's Hospital for the third quarter of 2013 (ii) Define budgeting and explain its role in the management cycle