You are considering starting a walk-in clinic. Your financial projections for the first year of operations...
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You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: $400,000 220,000 5,000 30,000 2,500 50,000 Revenues (10,000 visits) Wages and benefits Rent Depreciation Uteties Medical supplics Administrative supplies 10,000 Assume that all costs are fixed, except supply costs (medical and administrative), which are variable. Furthermore, assume that the clinic must pay taxes at a 30 percent rate. a. Construct the clinic's projected P&L statement. b. What number of visits is required to brcak even (revenuc covers all accounting costs)? c. What number of visits is required to produce an after-tax profit of $100,000? You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: $400,000 220,000 5,000 30,000 2,500 50,000 Revenues (10,000 visits) Wages and benefits Rent Depreciation Uteties Medical supplics Administrative supplies 10,000 Assume that all costs are fixed, except supply costs (medical and administrative), which are variable. Furthermore, assume that the clinic must pay taxes at a 30 percent rate. a. Construct the clinic's projected P&L statement. b. What number of visits is required to brcak even (revenuc covers all accounting costs)? c. What number of visits is required to produce an after-tax profit of $100,000?
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The projected P L statement Income statement of the orga... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-1337119207
14th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date:
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