### Determine an expense budget on an accrual basis

Assignment Help Corporate Finance
##### Reference no: EM1315869

Preparation of Workers cost, supplies to be purchased and expenses budget of Service Sector - Hospital

The hospital expects to employ workers in the following departments:

 Radiology Nursing Administration Total Managers \$100,000 \$200,000 \$200,000 \$500,000 Staff 1,900,000 4,200,000 300,000 6,400,000 Total \$2,000,000 \$4,400,000 \$500,000 \$6,900,000

Supplies are expected to be purchased through-out the year for the departments, as follows:

Assume that all supply use varies with the number of patients.

Denison Hospital currently pays rent on its buildings and equipment of \$300,000 per year. Rent is expected to be unchanged next year. The rent is paid \$75,000 each quarter.

To better serve its patients, Denison would like to buy \$500,000 of new oncology equipment at the start of next year. It would be paid for immediately upon purchase. The equipment has a five-year life and would be expected to be used up evenly over that lifetime. Although the capital budget would normally include justification for why the equipment is needed, it is sufficient for our purposes to know that the capital budget for Denison is \$500,000 and the equipment to be purchased has a five-year useful life. It will have no value left at the end of the five years. Denison charges the cost of its capital acquisitions on straight-line depreciation basis. That means that the cost is spread out over the useful life, with an equal share being charged as an expense, called depreciation expense, each year.

Calculate an expense budget on an accrual basis for the coming year. The expense budget does not require detailed information by program or department, but should show each type of expense such as salaries and supplies. Be sure to consider the impact of capital acquisitions on the expense budget.

### Previous Q& A

#### Combining revenue and expense budget

Preparation of operating budget of hospital by combining revenue and expense budget - Combine the revenue (Section A) and expense budgets to present an operating budget for the coming year.

#### Matrice operations

Matrice operations

#### Matrice operations solve the problem

Matrice operations solve the problem

#### Matrice operations solve the problem

Matrice operations solve the problem.

#### Preparation of product cost and analyzing wastage

Preparation of Product Cost and analyzing Wastage, Spoilage and Compute the cost of good units completed and transferred out, spoilage, and ending inventory using the eighted-average method.

#### Use augmented matrices

Use augmented matrices

#### Finding the value of inventory destroyed

Finding the value of inventory destroyed in natural disaster - estimate the amount of inventory destroyed in the natural disaster.

#### What order size should smith college acquire from vendor

Evaluation of EOQ Decisions of college on vendor's order - What order size should Smith College acquire from the vendor? Explain Why?

#### Augmented matrices to solve the equations

Augmented matrices to solve the equations

#### Augmented matrices to solve the word problem

Augmented matrices to solve the word problem

### Similar Q& A

#### Which of the following is an internal source of funds

Multiple Choice questions on stocks and bonds - Which of the following is an internal source of funds?

#### Average price-earnings ratio

What is the industry average price-earnings ratio?

#### What order size should smith college acquire from vendor

Evaluation of EOQ Decisions of college on vendor's order - What order size should Smith College acquire from the vendor? Explain Why?

#### Show the graph showing total cost expenditures

Show the graph showing total cost expenditures for different numbers of testers employed and  If Globus's goal is to minimize labor costs, how many testers should they use to carry out the testing effort? Explain your rationale.

#### Prepare the necessary closing entries in proper journal form

Preparation of necessary closing entries form the given adjusting transactions -  prepare the necessary closing entries in proper journal form

#### Efficiency ratio and cost reduction target

Overheads, efficiency ratio, cost reduction target - Multiple choice - activity-based costing analysis of one of its best-selling toys

#### What is the state of the overall economy

value the common stock of a public company and issue a recommendation to investors whether to buy, sell or hold the stock.

#### Construct a conservative financing plan

Computation of net income - Construct a conservative financing plan with 80% of assets financial by long-term sources. If McKinsee's earnings before interest and taxes are \$6,000,000, what will their net income be

#### Explain the short and the long-run effects on real output

Explain the short and the long-run effects on real output, price, and unemployment

#### Calculation of future value on a per dollar basis

Calculation of future value, on a per dollar basis, of each of the two interest payment options and compute the future value of the \$47 million bid using each option, and determine which is bigger.

#### Formulate a bip model in algebraic form

Formulate a BIP model in algebraic form for this problem and Formulate and solve this model on a spreadsheet.

#### Find coleman''s overall or weighted average

Computation of cost of capital ignoring the floatation costs - WACC and Find Coleman's overall, or weighted average, cost of capital (WACC)? Ignore flotation costs.