Prepare cash flow budget with no historical accounting

Reference no: EM13826041

Problem:

Suppose you are asked to do a cash flow budget for the next 12 months for a newly opened baby health clinic. The budget must be done on a month-by-month basis. As the clinic has just opened you have no historical accounting data. The clinic is allowed to treat both private (fee paying) and public (no fee charged) patients. Outline the steps you would take, the type of questions you would need to ask and any assumptions you would need to make to develop the budget. Highlight the main areas of concern you would have about the accuracy of your forecasts - in particular, would you be more confident about your revenue or expense forecasts?

Additional Information:

This question is basically belongs to Finance as well as it discuses regarding preparing the cash flow budget for the newly opened baby health clinic which has no historical accounting data.

Reference no: EM13826041

Questions Cloud

Social security retirement benefits : Estimates vary widely as to when the trust fund for SS retirement benefits will be depleted. However, there is wide agreement that the program as currently structured is not sustainable in the long run. Increasing revenue and/or decreasing benefits w..

Management issues affected by instability of social security : As a benefits manager, how might the potential demise of Social Security affect the decisions you make regarding other benefits that you have the option of providing to your employees? How might it affect your company's human resource planning proces..

Explain the differences between leadership and management : Explain the differences between leadership and management. Use at least two credible sources

What can you do now to remedy the situation : Your boss has asked you to look into purchasing a plot of land on which to build an office. Your company does not want a real estate broker involved, and he trusts you to get the job done. You go to the local hall of records and ask to see the land m..

Prepare cash flow budget with no historical accounting : Suppose you are asked to do a cash flow budget for the next 12 months for a newly opened baby health clinic. The budget must be done on a month-by-month basis.

Essay on incidence of diabetes in australia : Essay on Incidence of Diabetes in Australia

What is the beta of your portfolio-risk-free security : A friend says that she expects to earn 13.00% on her portfolio with a beta of 1.50. You have two-asset portfolio including stock X and a risk-free security. The expected return on stock X is 11.00% and the beta is 1.20. The expected return on the ris..

What is the relationship between financial leverage and risk : What is the impact of financial leverage on wealth creation? What is the relationship between financial leverage and risk?

Applying the concepts of the organizational theory : Write an essay about applying the concepts of the organizational theory, organizational behavior, and organizational culture to make sound management decisions

User Account

All Pages