The Budd Lake Medical Center is located in a summer resort community in Budd Lake NY During the summer months the center operates an outpatient clinic for the treatment of minor injuries and illnesses The clinic is administered as a separate department within the hospital It has its own staff and maintains its own financial records All patients requiring extensive or intensive care are referred to other hospital departments PLEASE SEE ATTACHED PHOTO FOR LAYOUT Thank you Required Using Excel For the Budd Lake Outpatient Clinic Question a Supplies purchases budget for June, July and August with a total column Question b Revenue and expense budget for June, July and August with a total column Question c Cash budget for June, July and August with a total column Question d Is there an issue with the cash budget and what would you recommend An analysis of past operating data for the out patient clinic reveals the following PATIENT VISITS FOR JUNE, JULY, AND AUGUST June 2,500 visits, July 3,500, August 4,500 Staff Seven full time employees with total monthly salaries of $42,000 On a monthly basis, one additional staff member is hired for every 500 budgeted patient visits in excess of 3,000 at a cost of $4,000 per month Facilities Monthly facility costs, including depreciation of $2,000 and a total of $8,000 Supplies The supplies expense averages $10 per patient visit The center maintains an end of month supplies inventory equal to ten percent of the predicted needs of the following month with a minimum ending inventory of $3,000, which is also the desired inventory at the end of August Additional variable patient costs, such as medications, are charged directly to the patient by the hospital pharmacy Payments All staff and maintenance expenses are paid in the month the cost is incurred Supplies are purchased at a cost directly from the hospital with an immediate transfer of cash from the clinic cash account to the hospital cash account Collections The average bill for services rendered is $60 Of the total bills, 40 percent are paid in cash at the time the service is rendered, 10 percent are never paid, and the remaining 50 percent are covered by insurance In the past insurance companies have disallowed 20 percent of the claims filed and paid the balance two months after services are rendered May 30 status At the end of May, the clinic had $12,000 in cash and supplies costing $3,000 Part I, Problem I, Question A Part I, Problem I, Question C Budd Lake Medical Center Outpatient Clinic Budd Lake Medical Center Outpatient Clinic Supplies Purchases Budget (For June, July, and August) Cash Budget (For June, July, and August) June July August Total June July August Total Inventory required, current sales Beginning Cash S S Desired ending inventory Cash Receipts Total inventory needs Less beginning inventory Purchases $ $ $ Total Cash Available $ $ $ Part I, Problem I, Question B Cash Disbursements Round Lake Medical Center Outpatient Clinic Revenue and Expense Budget (For June, July, and August) June July August Total Ending Balance $ $ $ $ Total revenues $ $ $ Expenses Part I, Problem I, Question D Response Total expenses Revenues Expenses

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 29, 2024

The Budd Lake Medical Center is located in a summer resort community in Budd Lake NY. During the summer months the center operates an outpatient

The Budd Lake Medical Center is located in a summer resort community in Budd Lake NY. During the summer months the center operates an outpatient clinic for the treatment of minor injuries and illnesses. The clinic is administered as a separate department within the hospital. It has its own staff and maintains its own financial records. All patients requiring extensive or intensive care are referred to other hospital departments.

***PLEASE SEE ATTACHED PHOTO FOR LAYOUT*** Thank you

Required: Using Excel - For the Budd Lake Outpatient Clinic:

Question a. Supplies purchases budget for June, July and August with a total column

Question b. Revenue and expense budget for June, July and August with a total column

Question c. Cash budget for June, July and August with a total column.

Question d. Is there an issue with the cash budget and what would you recommend?

An analysis of past operating data for the out-patient clinic reveals the following:

PATIENT VISITS FOR JUNE, JULY, AND AUGUST --> June = 2,500 visits, July = 3,500, August = 4,500
Staff: Seven full-time employees with total monthly salaries of $42,000. On a monthly basis, one additional staff member is hired for every 500 budgeted patient visits in excess of 3,000 at a cost of $4,000 per month. ?
Facilities: Monthly facility costs, including depreciation of $2,000 and a total of $8,000 ?
Supplies: The supplies expense averages $10 per patient visit. The center maintains an end-of month supplies inventory equal to ten percent of the predicted needs of the following month with a minimum ending inventory of $3,000, which is also the desired inventory at the end of August. ? Additional variable patient costs, such as medications, are charged directly to the patient by the hospital pharmacy. ?
Payments: All staff and maintenance expenses are paid in the month the cost is incurred. Supplies are purchased at a cost directly from the hospital with an immediate transfer of cash from the clinic cash account to the hospital cash account. ?
Collections: The average bill for services rendered is $60. Of the total bills, 40 percent are paid in cash at the time the service is rendered, 10 percent are never paid, and the remaining 50 percent are covered by insurance. In the past insurance companies have disallowed 20 percent of the claims filed and paid the balance two months after services are rendered. ?
May 30 status: At the end of May, the clinic had $12,000 in cash and supplies costing $3,000.

Part I, Problem I, Question A Part I, Problem I, Question C Budd Lake Medical Center Outpatient Clinic Budd Lake Medical Center Outpatient Clinic Supplies Purchases Budget (For June, July, and August) Cash Budget (For June, July, and August) June July August Total June July August Total Inventory required, current sales Beginning Cash S S Desired ending inventory Cash Receipts Total inventory needs Less beginning inventory Purchases - $ $ $ Total Cash Available $ $ - $ Part I, Problem I, Question B Cash Disbursements Round Lake Medical Center Outpatient Clinic Revenue and Expense Budget (For June, July, and August) June July August Total Ending Balance $ - $ $ - $ Total revenues - $ $ $ Expenses: Part I, Problem I, Question D - Response Total expenses - Revenues - Expenses