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Given Information: Capital Requirements and Depreciation: Use the data given below to calculate the following: Calculate the total capital requirements for the listed assets plus
Given Information:
Capital Requirements and Depreciation: Use the data given below to calculate the following:
Calculate the total capital requirements for the listed assets plus any cash requirements for startup of the new Ambulatory Surgery Center building. Startup cash is used to establish a beginning inventory and cover payroll costs for staff orientation and training prior to the opening date.
Calculate the annual depreciation and total depreciation for each item up through the end of it's useful life. For each year, also sum the total depreciation for ALL items. Note: Start up cash is not depreciated do not include it in this portion.
tableAsset Description,Acquisition Cost, Useful Life yearsLandBuilding Construction,$sqft for sqftBuildout for interior space,$sqft for sqftPre Op Beds Equipment,$ per bed,Operating room equipment,$ per room,Post Op Beds equipment,$ per bed,Waiting room and admin office furniture,Startup Cash Requirements month Salaries and Benefits Expenses,from Personnel Expenses tab month Drug and Supply expenses,from Other Expenses tab
Assumptions
For the number of preop beds, operating rooms, and postop beds refer to your tab "Personnel Expenses" for the number of rooms that you calculated for rounded up to the next whole number that is the number that you will need to build and equip to accommodate the planned growth for the ASC
The preop and postop room space will each be one large room with partitions for each patient. Due to the short pre and postop times in an ASC, this is not unusual.
Assume straight line depreciation and no salvage value.
Building and equipment depreciation is recorded on the balance sheet as PP&E during construction, but the depreciation expense does not start until the building is put into use. Therefore, for record depreciation as Because we anticipate a January start date, record an entire year of depreciation starting in
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