Financial Management in Health Care | Cash Budget

Running head: FINANCIAL MANAGEMENT IN HEALTH CARE
Financial Management in Health Care
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FINANCIAL MANAGEMENT IN HEALTH CARE1
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................4
References........................................................................................................................................7

FINANCIAL MANAGEMENT IN HEALTH CARE2
Question 1
a) The cash budget has been prepared for the trend period of January 2018, to April 2018,
whereby all income and expenses that the company will be incurring will be considered for
analysis. The amount of money that needs to be borrowed can be calculated with the help of the
cash deficit that the company would be facing in each of the analyzed month or time period. The
cash inflow that the will be $35,000 and the cash outflow in the form of expenses will be
approximately $46,015 (Briggs, Scarborough & Wolstenholme, 2018). Thus in this the company
would be requiring a total of $11,015 as shown below:
Business Cash Budget
Details January February March April
Cash Balance 5,000 $0 $9,810 $11,990
Cash flow from Patient
Consultation $30,000 35,000 $25,000 $30,000
Total $35,000 $35,000 $34,810 $41,990
Expenses
Purchases (Consumable) $15,000 20,000 $15,000 $20,000
Wages $3,200 2,500 $3,000 $2,400
Mark. Expenses $1,225 $990 $1,050 $1,100
Admin. Exp $1,040 $1,100 $1,150 $1,220
Office Exp. $550 $600 $620 $570
Lease Payment $0 $0 $2,000 $2,000
Repayment of Loan 20,000 - - -
Renovation Waiting Room 5,000 - - -
Total Disbursement $46,015 $25,190 $22,820 $27,290
Cash Balance/(Deficit) ($11,015) $9,810 $11,990 $14,700
Add:
Fund (Loan) 11015 0 0 0
Ending Cash Balance $0 $9,810 $11,990 $14,700