Accounting with health care 6 pages not including title page and reference page
Week Four Case #2: (Show ALL work)
Cash flow exercise
Joseph Pharmacy had sales of $25,000 in December and $30,000 in January. The company expects sales of $20,000 in February and $40,000 in both March and April, and $30,000 in May. The company has no other source of cash inflows. Half of the sales are paid for with cash. Twenty-five percent are paid for in each of the two months following the sale.
Joseph Pharmacy has the following expenses: (show all of your work)
· Monthly rent of $1,500
· Wages of $5,000 each month
· Purchases
. 50% of next month’s sales
. Cash Outlay
2. 20% in month purchased
2. 80% in following month
From the information provided:
1. Calculate the projected Cash Receipts for the three months of February, March, and April (Tables have been set up for you)
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Sales forecast |
December |
January |
February |
March |
April |
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Cash Sales |
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Collection of AR: Lagged 1 Month Lagged 2 Months |
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Other Cash Receipts |
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Total Cash Receipts |
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2. Calculate the projected Cash Disbursements for the same months
A Schedule of Projected Cash Disbursements for Joseph Pharmacy
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Sales |
December
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January
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February
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March
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April
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Purchases (50% of last month’s sales)
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Rent payments |
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Wages/Salaries |
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Total |
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3. Indicate what the total cash balance would be at the end of these three months if the cash balance at the beginning of February was $1,500.
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February Cash balance |
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Total Cash Receipts |
December
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January
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February
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March
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April
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Cash Disbursements |
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Balance |
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Balance from Feb - April |
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4. Define cash inflows and cash outflows
5. If I have a budget where expected gross receipts are what is obtained in #1 and my expected cash disbursements are what is obtained in #2. What can you tell me about the cash balance (obtained in #3) if you were doing a variance analysis?
6. What is a cash budget, a flexible budget, CAPEX, and OPEX?
7. How often do you use some form of budgeting? Why?
8. If the business world is allowed to explain away their variances to budget, why is budgeting so important?
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Grading Rubric: Week 2 Paper (150 points) |
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Excellent |
Good |
Fair |
Poor |
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Calculates the projected cash receipt receipts, cash disbursements, and cash balance and shows all work (60 points) |
16-20 points: Clearly Understands the concept of cash inflows and out flows to arrive at an acceptable cash balance and shows all work using appropriate citations and explanation |
11-15 points: Partially Understands the concept of cash inflows and out flows to arrive at an acceptable cash balance and shows all work using partial citations and explanation |
6-10 points: Minimally Understands the concept of cash inflows and out flows to arrive at an acceptable cash balance and shows all work using minimal citations and explanation |
0-5 points: Does not Understand cash inflows and outflows and does not use appropriate citations and explanations |
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Describes the difference between a “specific services” to a “bundled services (20points) |
16-20 points: Clearly Describes the difference between a “specific services” to a “bundled services using appropriate citations and explanation |
11-15 points: Partially Describes the difference between a “specific services” to a “bundled services using partial citations and explanation |
6-10 points: Minimally Describes the difference between a “specific services” to a “bundled services using minimal citations and explanation |
0-5 points: Does not Describe the difference between a “specific services” to a “bundled services does not use appropriate citations |
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Describe how providers control their revenue function . (20 points) |
16-20 points: Clearly Describes how providers control their revenue function using appropriate citations and explanation |
11-15 points: Partially Describes how providers control their revenue function using partial citations and explanation |
6-10 points: Minimally Describes how providers control their revenue function using minimal citations and explanation |
0-5 points: Does not Describe how providers control their revenue function , does not use appropriate citations |
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Context: grammar, word choice, organization, spelling (20 points) |
16-20 points: 0-6 content issues |
11-15 points: 7-10 content issues |
6-10 points: 11-14 content issues |
0-5 points: Have over 14 content issues. |
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APA: (20 points) |
16-20 points: 0-5 APA issues |
11-15 points: 6-10 APA issues |
6-10 points: 11-14 APA issues |
0-5 points: Have over 14 APA issues. |