St Barnabas Hospital is opening a satellite office. Your financial projections for the first year of operations are as follows: Revenues (10,000) $500,000 Wages and Benefits $350,000 Rent 8,000 Depreciation 50,000 Utilities 4,500 Medical Supplies 70,000 Administrative Supplies 20,000 Assume that all cost are fixed except supply costs, which are variable. Furthermore, assume that the clinic must pay taxes at a 30 percent rate. a. Construct the clinics projected P & L statement. Insert your response here. b. What number of visit is required to break-even? Insert your response here. c. What number of visits is required to provide you with an after-tax profit of $100,000? Insert your response here.

St Barnabas Hospital is opening a satellite office. Your financial projections for the first year of operations are as follows: Revenues (10,000) $500,000 Wages and Benefits $350,000 Rent 8,000 Depreciation 50,000 Utilities 4,500 Medical Supplies 70,000 Administrative Supplies 20,000 Assume that all cost are fixed except supply costs, which are variable. Furthermore, assume that the clinic must pay taxes at a 30 percent rate. a. Construct the clinics projected P & L statement. Insert your response here. b. What number of visit is required to break-even? Insert your response here. c. What number of visits is required to provide you with an after-tax profit of $100,000? Insert your response here.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 4PA: Jefferson Memorial Hospital is an investment center as a division of Hospitals United. During the...

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You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: Revenue (10000 visits) $405,041 Wages and benefit $236,502 Rent $4,415 Depreciation $27,780 Utilities $2,845 Medical supplies $46,208 Administrative supplies $9,302 Assume that all costs are fixed, except supply costs, which are variable. Furthermore, assume that the clinic must pay taxes at a 30 percent rate. What number of visits is required to break even?
General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services Fixed $10,000,000 Variable cost per inpatient day 200 Charge (revenue) per inpatient day 1000 The hospital expects to have a patient load of 15,000 inpatient days next year. a. Construct the hospital’s base case projected P&L statement. b. What is the hospital’s breakeven point? c. What volume is required to provide a profit of $1,000,000? A profit of $500,000? d. Now, assume that 20 percent of the hospital’s inpatient days come from a managed care plan that requests a 25 percent discount from charges. Should the hospital agree to the discount proposal?
The management of a private hospital is considering automating some back office functions. This would replace five personnel that currently cover three shifts per day, 365 days per year. Each person earns $35,000 per year. Company-paid benefits and overhead are 45% of wages. Money costs 8% after income taxes. Combined federal and state income taxes are 28%. Annual property taxes and maintenance are and 4% of investment, respectively. Depreciation is 15-year straight line. Disregarding inflation, how large an investment in the automation project can be economically justified?
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The hospital where you are employed is continuing with their analysis with the goal of opening a walk-in clinic. After conducting additional research, the financial projections for the first year of operations are as follows: Revenues (from 10,000 visits): $400,000 Wages and benefits: $220,000 Rent: $5,000 Depreciation: $30,000 Utilities: $2,500 Medical supplies: $50,000 Administrative supplies: $10,000 Assume that all costs are fixed except supply costs, which are variable. Assume that the clinic will be required to pay taxes at a 30% tax rate. Respond to the following questions. Be sure to show your work for all calculations. Prepare the clinic’s projected Profit and Loss (P&L) Statement. (8 points) What number of visits is required to break even? (3 points) What number of visits is required to provide you with an after-tax profit of $100,000? (4 points)
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Jefferson Memorial Hospital is an investment center as a division of Hospitals United. During the past year, Jefferson reported an after-tax income of $7 million. Total interest expense was $3,000,000, and the hospital tax rate was 30%. Total assets totaled $69.7 million, and non-interest-bearing current liabilities were $22,700,000. The required rate of return established by Jefferson is equal to 18% of invested capital. What is the residual income of Jefferson Memorial Hospital? Enter your answer in whole dollar. $fill in the blank
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A new cardiac catheterization lab was constructed at Havea Heart Hospital. The investment for the lab was $450,000 in equipment costs and $50,000 in renovation costs. A desired return on investment is 12%. Once the lab was constructed, 5,000 patients were served in the first year and were charged $340 for each procedure. The annual fixed cost for the catheterization lab is $1,000,000 and the variable cost is $129 per procedure. a. What is the lab's profit? b. Calculate the ROI for the catheterization lab. b. Does the profit generated meet the hospital's the required ROI? Enter Yes or No for your answer.
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