Health Service Resources Management - Finance Assignment

Running head: HEALTH SERVICE RESOURCE MANAGEMENT
Finance
Name of the Student:
Name if the University:
Author’s Note:

HEALTH SERVICE RESOURCES MANAGEMENT1
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................4
References........................................................................................................................................7

HEALTH SERVICE RESOURCES MANAGEMENT2
Question 1
a) Cash Budget for the month of January 2018 to April 2018 was prepared with the help of the
cash inflows and cash outflows for the company. The amount to be borrowed would be
significantly dependent on the total available cash for the company. Total amount of money
needs to be borrowed for the month of January would be around $6,205. The source of total cash
inflow would be around $60,000 and the total disbursement will be around $66,205 (Reichard &
Van Helden, 2016).
Business Cash Budget
Details January February March April
Opening Balance 5,000 $0 $19,180 $26,390
Inflow from Patient
Consultation $55,000 65,000 $35,000 $40,000
Total Cash Available $60,000 $65,000 $54,180 $66,390
Outflows:
Purchase of Consumables $30,000 40,000 $22,500 $25,000
Wages $5,700 3,000 $2,400 $2,600
Marketing Exp. $2,215 $1,050 $1,100 $1,200
Administrative Exp. $2,140 $1,150 $1,220 $1,180
Office Exp. $1,150 $620 $570 $710
Loan Repayment 20,000 - - -
Waiting Room Renovation 5,000 - - -
Total Disbursement $66,205 $45,820 $27,790 $30,690
Cash Balance/(Deficit) ($6,205) $19,180 $26,390 $35,700
Add:
Short Term Loans 6205 0 0 0
Ending Cash Balance $0 $19,180 $26,390 $35,700
b) The manager of Day Surgery can consider replacing the aging computer system for a cost of
$25,000 in the month of April as the total ending cash balance would be around $35,700. Thus,