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Question - Orlando Clinic (OC) is in the process of preparing a cash budget for December. OC had the following results for the past three months:
Net patient service revenue
September $140,000
October $100,000
November $160,000
OC has no uncollectible accounts. In December, OC is expecting $180,000 in net patient service revenue. Typically, OC collects charges as follows: 70% during the month of service, 20% during the second month, and 10% during the third month. What should be budgeted for total cash collections in December in OC's cash budget?
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