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Question 1

Revenue

Payment No Patient (%) No Patient Patient Revenue Expenses


Oncology 120 25%
Private Insurance £50,000 30% 36 £1,800,000
NHS £40,000 50% 60 £2,400,000
Self Pay £50,000 10% 12 £600,000 £150,000
Charity £0 10% 12 £0
Cardiac 80 £0
Private Insurance £40,000 20% 16 £640,000
NHS £30,000 60% 48 £1,440,000
Self Pay £40,000 10% 8 £320,000 £80,000
Charity £0 10% 8 £0
Rhinoplasty 40 £0
Private Insurance £25,000 10% 4 £100,000
NHS £10,000 20% 8 £80,000
Self Pay £25,000 60% 24 £600,000 £150,000
Charity £0 10% 4 £0

Total Patient Revenue 240 £7,980,000


Fix
Question 2:
Endowment
UK Treasuries £500,000 6% £30,000
BT Shares £250,000 8% £20,000
Bond £250,000 2% £5,000

TOTAL ENDOWMENT £55,000

Gift Shop £120,000


TOTAL REVENUE £8,155,000
Question 3:
Revenue Budget

Oncology £4,800,000.00
Cardiac £2,400,000.00
Rhinoplasty £780,000.00
£7,980,000.00
Endowment revenue £55,000.00
Gift shop £120,000.00
TOTAL REVENUE £8,155,000.00
Section 2 Section 3
Question 4: Question 7:
Expected Bad Debts Department
Department Self pay Patients Bad debt Radiology
25% Supplies £360,000
Oncology £600,000 £150,000 Salaries
Cadiac £320,000 £80,000 Manager £100,000
Rhinoplasty £600,000 £150,000 Staff £1,900,000
Total £2,000,000
Total expected bad debts £380,000 £2,360,000

Nursing
Supplies £160,000
Salaries
Manager £200,000
Staff £4,200,000
Question 5: Total £4,400,000
Expenses Budget £4,560,000
Rent £300,000
Depreciation (equipment) £100,000 Administration
Workers Salaries £6,900,000 Supplies £20,000
Supplies £540,000 Salaries
Bad debt £380,000 Manager £200,000
Staff £300,000
TOTAL £8,220,000 Total £520,000

Question 6: TOTAL £7,440,000


OPERATING BUDGET
Revenue Expense
£8,155,000 £8,220,000
Question 8:

Program Expense % Amount


Oncology
Radiology 80.00% £1,888,000
Nursing 50.00% £2,280,000
Administration 50.00% £260,000
Depreciation £100,000
£4,528,000
Cardiac
Radiology 15.00% £354,000.00
Nursing 40.00% £1,824,000.00
Administration 35.00% £182,000.00
£2,360,000.00

Rhinoplasty
Radiology 5.00% £118,000.00
Nursing 10.00% £456,000.00
Administration 15.00% £78,000.00
£652,000.00
TOTAL £7,540,000.00
SECTION 4 THE TREVALYN
Question 9 FLEXIBLE BUDGET
BELOW EXPECTED
10% 20%
No. Patients 216 192

oncoloy

DEPARTMENT
Radiology

Supplies £324,000.00 £288,000.00


Salaries
Manager £100,000.00 £100,000.00
Staff £1,710,000.00 £1,520,000.00
total salary £1,810,000.00 £1,620,000.00
Total Cost £2,134,000.00 £1,908,000.00

Oncology 80% £1,707,200.00 £1,526,400.00


Cardiac 15% £320,100.00 £286,200.00
Rhinoplasty 5% £106,700.00 £95,400.00
Total Cost £2,134,000.00 £1,908,000.00

Nursing

Supplies £144,000.00 £128,000.00


Salaries
Manager £200,000.00 £200,000.00
Staff £3,780,000.00 £3,360,000.00
total salary £3,980,000.00 £3,560,000.00
Total Cost £4,124,000.00 £3,688,000.00

Oncology 50% £2,062,000.00 £1,844,000.00


Cardiac 40% £1,649,600.00 £1,475,200.00
Rhinoplasty 10% £412,400.00 £368,800.00
Total Cost £4,124,000.00 £3,688,000.00

Administration

Supplies £18,000.00 £16,000.00


Salaries
Manager £200,000.00 £200,000.00
Staff £300,000.00 £300,000.00
Total salary £500,000.00 £500,000.00
Total Cost £518,000.00 £516,000.00

Oncology 50% £259,000.00 £258,000.00


Cardiac 35% £181,300.00 £180,600.00
Rhinoplasty 15% £77,700.00 £77,400.00
Total Cost £518,000.00 £516,000.00
THE TREVALYN
FLEXIBLE BUDGET
EXPECTED ABOVE EXPECTED
10% 20%
240 264 288

4800000

£360,000.00 £396,000.00 £432,000.00

£100,000.00 £100,000.00 £100,000.00


£1,900,000.00 £2,090,000.00 £2,280,000.00
£2,000,000.00 £2,200,000.00 £2,400,000.00
£2,360,000.00 £2,596,000.00 £2,832,000.00

£1,888,000.00 £2,076,800.00 £2,265,600.00


£354,000.00 £389,400.00 £424,800.00
£118,000.00 £129,800.00 £141,600.00
£2,360,000.00 £2,596,000.00 £2,832,000.00

£160,000.00 £176,000.00 £192,000.00

£200,000.00 £200,000.00 £200,000.00


£4,200,000.00 £4,620,000.00 £5,040,000.00
£4,400,000.00 £4,820,000.00 £5,240,000.00
£4,560,000.00 £4,996,000.00 £5,432,000.00

£2,280,000.00 £2,498,000.00 £2,716,000.00


£1,824,000.00 £1,998,400.00 £2,172,800.00
£456,000.00 £499,600.00 £543,200.00
£4,560,000.00 £4,996,000.00 £5,432,000.00

£20,000.00 £22,000.00 £24,000.00

£200,000.00 £200,000.00 £200,000.00


£300,000.00 £300,000.00 £300,000.00
£500,000.00 £500,000.00 £500,000.00
£520,000.00 £522,000.00 £524,000.00

£260,000.00 £261,000.00 £262,000.00


£182,000.00 £182,700.00 £183,400.00
£78,000.00 £78,300.00 £78,600.00
£520,000.00 £522,000.00 £524,000.00
SECTION 5 THE
Question 10 CASH BU
Quarter 1

Opening Balance £50,000

Inflow: 30%
Private insurance (last quarter revenue) £635,000
NHS (half of last quarter + half of quarter preceeding last) £882,000
Self Pay (25% of each of preceeding 3 quarters) £266,000
Endowment income (received in 3rd quarter) £0
Gift shop revenue (equally each quarter) £30,000
Bank loan £615,000

Total inflow £2,428,000


£1,176,000
Outflow
supplies (previous quarter's supplies) £128,000
salaries (paid equally each quarter) £1,725,000
rent £75,000
Oncology equipment (1st quarter) £500,000
Interest @12%p.a: quarterly rate = (12/100)*(3/12)*100 = 3% £0
Repayment of Loan principal £0

Total outflow £2,428,000

Required running balance £50,000


THE TREVALYN
CASH BUDGET FOR 2011
Quarter 2 Quarter 3 Quarter 4 ANNUAL BUDGETED
(ACCRUAL BASIS)

£50,000 £50,000 £50,000

25% 20% 25%


£762,000 £635,000 £508,000 £2,540,000
£1,078,000 £1,078,000 £882,000 £3,920,000
£285,000 £304,000 £285,000 £1,520,000
£0 £55,000 £0 £55,000
£30,000 £30,000 £30,000 £120,000
£0 £0 £240,899

£2,155,000 £2,102,000 £1,945,899

£150,000 £124,000 £138,000 £540,000


£1,725,000 £1,725,000 £1,725,000 £6,900,000
£75,000 £75,000 £75,000 £300,000
£0 £0
£18,450 £12,854 £7,899
£186,550 £165,147 £0

£2,155,000 £2,102,001 £1,945,899

£50,000 £50,000 £50,000

£428,450
£263,303