1 How do you find annual cash flow Making the Connection Integrative Exercises Part 4 Chapters 16 20 Sabrina Hoffman is founder and CEO of Golden Care, Inc , which owns and operates several assisted living facilities The facilities are apartment style buildings with 25 to 30 one or two bedroom apartments While each apartment has its own complete kitchen, in every building Golden Care offers communal dining options and an on site nurse who is available 24 hours a day Residents can choose monthly meal options that include one or two meals per day in the dining room Residents who require nursing services (e g , blood pressure monitoring and injections) can receive those services from the nurse However, Golden Care facilities are not nursing homes, all residents are ambulatory, and custodial care is not an option In the five years it has been in operation, the company has expanded from one facility to five, located in southwestern cities The income statement for last year follows Golden Care, Inc Income Statement for Last Year Revenue $ 2,880,000 00 Cost of Services 2,016,000 00 Gross Profit $ 864,000 00 Marketing and administrate expenses 500,000 00 Operating Income $ 364,000 00 Sabrina originally got into the business because she had trouble finding adequate facilities for her mother The concept worked well, and income over the past five years had grown nicely at 20 percent per year However, Sabrina sensed clouds on the horizon She knew that the population was aging and that her current clients would be moving to more traditional forms of nursing care As a result, Sabrina wanted to consider adding one or more nursing homes to Golden Care These nursing homes would be staffed around the clock with RNs and LPNs The residents would likely have more severe medical problems and would be confined to beds or wheelchairs Sabrina knew that quality care of this type was needed So, she contacted Peter Verdon, her marketing manager, and Bernadette Masters, her accountant, for a brainstorming session Peter

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 17, 2024

1. How do you find annual cash flow? Making the Connection: Integrative Exercises Part 4: Chapters 16-20 Sabrina Hoffman is founder and CEO of Golden

1. How do you find annual cash flow?

Making the Connection: Integrative Exercises

Part 4: Chapters 16-20

Sabrina Hoffman is founder and CEO of Golden Care, Inc., which owns and operates several assisted living facilities. The facilities are apartment-style buildings with 25 to 30 one- or two-bedroom apartments. While each apartment has its own complete kitchen, in every building Golden Care offers communal dining options and an on-site nurse who is available 24 hours a day. Residents can choose monthly meal options that include one or two meals per day in the dining room. Residents who require nursing services (e.g., blood pressure monitoring and injections) can receive those services from the nurse. However, Golden Care facilities are not nursing homes, all residents are ambulatory, and custodial care is not an option. In the five years it has been in operation, the company has expanded from one facility to five, located in southwestern cities. The income statement for last year follows.

Golden Care, Inc.
Income Statement for Last Year
Revenue	$ 2,880,000.00
Cost of Services	2,016,000.00
Gross Profit	$ 864,000.00
Marketing and administrate expenses	500,000.00
Operating Income	$ 364,000.00

Sabrina originally got into the business because she had trouble finding adequate facilities for her mother. The concept worked well, and income over the past five years had grown nicely at 20 percent per year. However, Sabrina sensed clouds on the horizon. She knew that the population was aging and that her current clients would be moving to more traditional forms of nursing care. As a result, Sabrina wanted to consider adding one or more nursing homes to Golden Care. These nursing homes would be staffed around the clock with RNs and LPNs. The residents would likely have more severe medical problems and would be confined to beds or wheelchairs. Sabrina knew that quality care of this type was needed. So, she contacted Peter Verdon, her marketing manager, and Bernadette Masters, her accountant, for a brainstorming session.

Peter: