Budgeting and Planning
\nAfter reading the case of Dr Roger Jones\u2019s dental business (refer to attached word document), write a report in an essay format with 1500 words in attempt to address the 5 questions stated below. You will need to include a short introduction in the beginning and a conclusion paragraph at the end. This assignment will test your understanding in areas of \u201cbudgeting and planning\u201d and the concept of \u201ccash budgets\u201d.<\/p>\n
Q1. Prepare a monthly cash budget for Dr Jones (showing 12 months data). Hint: Expenses that are accrued (non-cash) will not be relevant for analysis (i.e. depreciation). You may make your own assumptions on the costs as long as it makes sense.<\/p>\n
Q2. Does Dr Jones have a significant cash flow problem How would you use the budget to show Dr Jones why he is having financial difficulties <\/p>\n
Q3. Using the cash budget prepared in Question 1 and the information given in the case, recommend actions to solve Dr Jones\u2019 financial problems.<\/p>\n
Q4. Prepare a revised cash budget that reflects these recommendations and demonstrates to Dr Jones that the problems can be corrected.<\/p>\n
Q5. Do you think that Dr Jones will accept your recommendations Do any of the behavioural principles on budgeting have a role in this type of setting Explain your answer.<\/p>\n
Assignment problem:<\/p>\n
According to the analysis of a local consultant, the financial difficulties of Dr Roger Jones have been caused by the absence of proper planning and control. Budgetary control is sorely needed. To assist you in preparing a plan of action that will help his dental practice to regain financial stability, Dr Jones has made available the financial information describing a typical month in the following table:<\/p>\n
Assumption: Revenue and cost data shown below are based on per month basis.
\nBenefits include Dr Jones\u2019 share of social security and a health insurance premium for all employees. Although all revenues billed in a month are not collected, the cash flowing into the business is approximately equal to the month\u2019s billing because of collections from prior months. The dental office is open Monday to Thursday from 8.30 a.m. to 4.00 p.m. and on Friday from 8.30 a.m. to 12.30 p.m. A total of 32 hours are worked each week. Additional hours could be worked, but Dr Jones is reluctant to do so because of other personal endeavours that he enjoys.<\/p>\n
Dr Jones has noted that the two dental assistants and the receptionist are not fully utilized. He estimates that they are busy about 65-70% of the time. Dr Jones\u2019 wife spends about five hours each week on a monthly newsletter that is sent to all patients; she also maintains a birthday list and sends cards to patients on their birthdays.
\nDr Jones spends about $2,400 yearly on informational seminars. These seminars targeted especially for dentists, teach them how to increase their revenues. It is from one of these seminars that Dr Jones decided to invest in promotion and public relations (the newsletter and the birthday list).<\/p>\n","protected":false},"excerpt":{"rendered":"
Budgeting and Planning After reading the case of Dr Roger Jones\u2019s dental business (refer to attached word document), write a report in an essay format with 1500 words in attempt to address the 5 questions stated below. You will need Read More …<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-95768","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/95768","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=95768"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/95768\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=95768"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=95768"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=95768"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}