Alpine Village Clinic is located in a winter resort near the town of Aspen, Colorado. Although it is open year-round, it is primarily a seasonal business since the majority of patients seen at the clinic are walk-ins during the winter months of December through March, when skiing is in full swing and associated injuries are common. The doctors considered closing the clinic during the summer months, but operating the clinic for part of the year is inefficient and, furthermore, there appears to be sufficient summer demand for the clinic's services. The two doctors who run the clinic are Dr. James Peterson, an orthopedist, and Dr. Amanda Cook, an internist. Dr. Cook generally handles all of the clinic's financial work (besides payroll which is handled by an external accountant). However, the clinic hired a part-time MBA student named Doug Washington. In October 2009, the clinic's primary lender, First Bank of Aspen, asked the clinic for an estimate of its borrowing needs for the first half of 2010. For this, Dr. Cook asked Doug to provide an estimate from the clinic's credit line. credit, as well as prepare a cash flow budget. Based on the clinic's previous collections experience, Dough was able to convert bills for medical services into actual cash collections. On average, about 20% of the clinic's patients pay immediately for the services rendered. Third-party payers pay the remaining receivables, with 20% of payments made within 30 days and the remaining 60% (of total invoices) paid within 60 days. For monthly budgeting purposes, 20% is assumed to be collected one month after the billing month and 60% is assumed to be collected two months after the billing month. Variable costs for the clinic are...... middle of paper. .....and the useful life of the machine must be calculated. Then, depending on the method used, the total cost of the machine is considered a long-term asset and depreciated over the life of the asset. Another consideration that the clinic must take into account is the external environment. Seasonal patient volume and banking agreement may be the main aspects of concentration. Although the relationship between the bank and the clinic is defined in the case, Alpine Clinic should consider alternative solutions or alternative organizations to finance its needs. Additionally, the clinic must estimate possible changes in the economic environment over the next few years and their impact on the population served by the clinic.Work CitedFlinker S., Ward D., Calabrese T., (2013). Accounting Foundations for Healthcare Management, 2nd Edition.