Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: 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:

 

Total

Radiology

$360,000

Nursing

160,000

Administration

160,000

Total

$540,000

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

Denison Hospital currently pays charge on its buildings & machine of $300,000 per year. Rent is expected to be unchanged for next year. The rent is paid dollar 75,000 each quarter.

To better serve its patients, Denison would like to buy $500,000 of new oncology machine at the start of next year. It would be paid for immediately upon buy. The machine 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 machine is needed, it is sufficient for our purposes to know that the capital budget for Denison is dollar 500,000 & the machine to be purchased has a five (5) year useful life. It will have no price left at the end of the five (5) years. Denison charges the cost of its capital gaining on straight line depreciation basis. That means that the cost is spread out over the useful life, with an equal share being charged as a cost, called depreciation expense, every year.

Compute an expense budget on an accrual basis for the coming year. The expense budget does not need detailed information by program, but should show each type of expense such as salaries & supplies. Be sure to consider the impact of capital gaining on the expense budget.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M920480

Have any Question? 


Related Questions in Basic Finance

What is the difference between a pure discount bond and a

What is the difference between a pure discount bond and a bond that trades at a discount? If issuers successfully sell pure discount bonds in the market, investors must want them. Can you explain why any bond purchaser m ...

Figure 942 is one depth-first presentation of the ow graph

Figure 9.42 is one depth-first presentation of the ow graph of Fig. 9.38. How many other depth-first presentations of this ow graph are there? Remember, order of children matters in distinguishing depth-first presentatio ...

Suppose that you wish to buy stock and protect yourself

Suppose that you wish to buy stock and protect yourself against a downside movement in its price. You consider both a covered call and a protective put. What factors will affect your decision? You have inherited some sto ...

Gun manufacturer bloodbath amp beyond currently has a cash

Gun manufacturer Bloodbath & Beyond currently has a cash balance of $750,000. It projects that cash outflows of $390,000 a month. The company pays a fee of $500 every time it sells securities through its broker and the a ...

Imagine that you have collected the following set of iq

Imagine that you have collected the following set of IQ scores: a . Construct a simple frequency distribution of these scores. b. Construct a grouped frequency distribution of these scores that includes both frequencies ...

1 what factors should an investor consider when trying to

1. What factors should an investor consider when trying to decide whether to dispose of a property that he has owned for several years? 2. What causes the marginal rate of return to change over time? How can the marginal ...

Aol is considering two proposals to overhaul its network

AOL is considering two proposals to overhaul its network infrastructure.  They have received two bids.  The first bid from Huawei will require a $18 million upfront investment and will generate $20 million in savings for ...

The following excerpt is taken from a publication of the

The following excerpt is taken from a publication of the American Institute of Certified Public Accountants (we won't give the title since it is the answer to one of the questions): Great strides have been made by the FA ...

What does the word sustainable mean in sustainable growth

What does the word sustainable mean in "sustainable growth model"? In what ways can the sustainable growth model highlight conflicts between a firm's competing objectives?

David wheelock of the federal reserve bank of st louis

David Wheelock of the Federal Reserve Bank of St. Louis describes the following episode at the beginning of the Great Depression: Following the stock market crash [of October 1929], the Federal Reserve Bank of New York u ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro