Important: You must show all calculations and explain how you got all your answers. For example, suppose a question asks what the breakeven point will be and you put “50,000”. Even if this is correct, you will receive no marks if you do not show how you got the answer.

There is no need for footnotes or references unless quote from a reference. It is essential that the work is your own.

Please do NOT include the question as part of your assignment. It is not necessary and all it does is increase your turnitin similarity index. Just put your answers in your assignment response.

Question 1 (15 marks)

Below are the forecasts of income and expenditure for the Ryde Day Surgery.

Months	Patient consultations	Purchases of consumables	Wages	Marketing expenses	Administrative expenses	Office expenses
2017 Nov.	$30,000	$15,000	$3,000	$1,150	$1,060	$500
2017 Dec.	$35,000	$20,000	$3,200	$1,225	$1,040	$550
2018 Jan.	$25,000	$15,000	$2,500	$990	$1,100	$600
Feb.	$30,000	$20,000	$3,000	$1,050	$1,150	$620
March	$35,000	$22,500	$2,400	$1,100	$1,220	$570
April	$40,000	$25,000	$2,600	$1,200	$1,180	$710

Additional information is as follows:

Patients pay two months after they are treated.

A loan repayment of $10,000 in due in April.

The waiting room will be renovated in January 2018 for a cost of $5,000 which will be paid in January 2018.

Payment for consumables is made two months after they are received.
Monthly lease payments of $2,000 for a new car will begin in March 2018

Wages are paid on the 1st of the next month.

Other expenses are paid one month after they are incurred.
Balance of cash in hand on 1st January 2018 is $15,000.

Prepare a cash budget for the months January 2018 to April (5 marks)
What is the estimated cash balance at the end of April 2018? (1 mark)
From January 2018, the Day Surgery will collect money from patients in the same month as they are treated. Also from January 2018, the suppliers of consumables want to be paid in the same month as they deliver the consumables. What impact will both changes have on the Surgery’s cashflow? What will be the estimated cash balance at the end of April 2018?

(4 marks)

Write a report to the manager outlining the Day Surgery’s forecast cash position and explain the financial impact of changing the collection and payment conditions as outlined in part c above. You need to compare the new situation with what would have occurred if neither of these changes had occurred. Would the Day Surgery need to borrow money if these changes occurred? Explain your answer. (5 marks)

***Words :400

****Excel need covert to work table in report，only use word file not excel.

**** Don’t use general explanation, report need detail of amount and answer each

**** CashflowTemplate only example not necessary have to be exactly same like this template.

Question 2 (15 marks)

It is now June and you have been asked to do a budget for The Flu Shot clinic as the flu season will soon begin. The clinic will operate for the months of July and August. As the hospital has no spare space it will rent a room in a nearby shopping centre for the clinic. The clinic will also employ a nurse to give the injections and a receptionist to assist with arranging vaccinations. Vaccines are expected to cost $15 per patient. In addition, the clinic will give each patient either regular or glow-in-the-dark band aids. A regular band aid is budgeted at $2, while a glow-in-the-dark band aid is budgeted at $3. Children always request glow-in-the-dark band aids. It is anticipated that the clinic will be paid $45 for each child and $30 for each adult that receive vaccinations. During last year’s flu season, the clinic saw 400 adults and 700 children each month and operated for 2 months.

The nurse is paid $10 per child and $5 per adult and the receptionist is paid $700 per month. Rent and utilities are $500 per month.

Using this information do a budget for the clinic for July and August. You are told to assume that there will be a 10% increase in the number of both children and adults wanting vaccinations this year. (4 marks)
The actual results for this clinic are shown below. Management want to know why the budgeted result and actual results for each month are different. Do a budget variance analysis for each month to identify what caused the actual and budgeted amounts to be different. You are told that in July the clinic saw 500 adults and 900 children, and in August the clinic saw 300 adults and 600 children. (7 marks)
Write a brief report to your manager summarising your findings and give recommendations for how to prepare the budget for next year. (4 marks)

Actual results

	July	August
Revenue Costs	60,000	39,000
Vaccines	28,000	18,000
Band aids	4,600	2,400
Rent	500	600
Receptionist	700	900
Nurse	14,000	9,000
Total cost	47,800	30,900
Net Profit/(loss)	12,200	8,100