Financial Forecasting And Planning Personality Associates

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Financial Forecasting and Planning-Personality Associates In 1992, Personality Associates was founded by Carl Myers to provide “complete psychological counselling for the family.” Myers, who had earned a PhD in clinical psychology in 1988, believed that psychological counselling needed to take a more open and family-oriented approach toward the general public. Gone were the days of the aloof and arcane counsellor, a generic title used by many, who simply stroked his chin and listened. Myers’ idea was to offer family counselling with a well-qualified professional staff in a modern, relaxed setting. They offered a variety of counselling formats, from individual and family therapy to small group seminars, and interpersonal communication skill…show more content…
Tables 1 and 2 provide the most recent income statement and balance sheet. The financial statements shown as Tables 1 and 2 reflect the state of the business up to the present. In the minds of Myers and his associates, the future held both great opportunities and challenges. The building that housed Personality Associates was owned by the corporation, free and clear. The substantial profit after-tax (retained earnings) earned since the company’s inception had been used to completely amortize the mortgage. That situation had left the company essentially debt free and solely owned by Myers and two of his associates – the original investors. It had become increasingly clear over the past 15-20 years that the public was willing to accept the “for-profit” medical care facility. In the public view, such an organization, as part of a chain, provided services in locations often not directly served by the more regionally focused municipal facilities. As a result of that trend Personality Associates was poised to expand. Regardless of the apparent economic feasibility of expansion, there were matters of ethics and quality control that concerned Myers. In short, what was the nature of the conflict, if any, between the for-profit aspect of the business and the great need to provide carefully monitored, high-quality professional service? Myers wanted to make sure that the internal mechanisms

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