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Using the Metropolis Health System Case Study (Chapter 28, page 393). Create two separate budgets. One budget would be for Operating Expenses and the second budget is to create a Capital Expenditure budget for the next fiscal year. Set out the details of all assumptions needed in order to build these budgets. As an aid use the Checklist for Building a Budget (Exhibit 15-2, pg. 183).
This assignment is best done in excel. Across the top of your budget use the months of the year and going down the spreadsheet specify the expected revenue and expenses.Here are some helpful hints before approaching this assignment:
1. Read the Case study and understand what it is asking. What is the problem to solve?
2. Determine which items are O&M vs Capital
3. Determine if there is any information missing. State assumptions when putting together the budget. If there is more revenue than expenses there is a surplus... if less a shortfall. Information may be missing and needs to be identified.
4. Some information may need to be created.
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