# hcf_u4ip

this response must be 2-3 pages

Part I

The budget scenario consists of actual and budgeted figures. Assume that Eastside Urgent Care Clinic anticipated that it would provide 2,500 flu shots in 2010 to noninsured patients at \$10 per shot. The revenue and expenses were budgeted for 2,700 flu shots in 2010 to noninsured patients. The budgeted expenses were \$5,000. Assume that the clinic provided only 2,455 flu shots to noninsured patients, or 98%. The actual expenses were \$4,500.

Calculate the following:

• Static budget variance
• Revenue
• Expenses
• Excess of expenses over revenue

Part II

Of the 4 cash flow reporting methods provided, which method is used in the following scenario?

Scenario:

Assumptions

• Item: The proposal is for the purchase of a new MRI machine
• Cost: The machine costs \$1,500,000. The cost for preparing the MRI suite is \$500,000. The total cost is \$2 million.
• Life: 10 years
• Salvage value: \$100,000
• Cost of capital: Estimated at 5%
• Cash flow: The MRI machine is expected to generate revenue.

The increase in revenue is anticipated to be \$2,500,000 over a period of 5 years.

• Year 0 = (\$2,000,000)
• Year 1 = \$500,000
• Year 2 = \$500,000
• Year 3 = \$500,000
• Year 4 = \$500,000
• Year 5 = \$500,000
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