I need help with question three from the file. I'm not sure how to calculate the net revenue.

UNIVERSITY OF ILLINOIS AT CHICAGO HIM 481 - HEALTHCARE FINANCIAL MANAGEMENT Project 1: Building a Financial Statement Instructions: Read through the scenario and complete items 1-10 below. Build your financial statements in Excel spreadsheet, using various formula to show your work. Your instructor should be able to change a few values and see the new resulting totals and margins. Answer the remaining questions in this document and submit. Points Earned: 15 points total for this assignment. Please see grading rubric in Blackboard. Submission Instructions: Answer all the 10 questions in pages 2 to 3 below. Submit answers to 10 questions in MS Word in appropriate field in Blackboard. Submit the Excel spreadsheets for your Income statement and Balance sheet in appropriate field in Blackboard. The purpose of this project is to accomplish the course objective: Apply the concepts of financial statements and perform financial performance measurements. (Domain IV.A. Revenue Cycle and Reimbursement). AHIMA Entry-Level Competencies for Health Information Management (HIM) at the Baccalaureate Level relevant to this course are listed below (AHIMA Council for Excellence in Education, 2014). ----------------------------------------------------------------------------------------------------------------------------------------------------------- Juan O'Sullivan graduated in May 2017 from UIC and looked everywhere for a job. He searched and searched for a decent job, and after a while he decided that the only way to get ahead was to start his own business. In order to support himself, Juan decided to pursue a life-long dream of owning a hot dog cart business in downtown Chicago. Without any substantial savings of his own, Juan borrowed $3,600 for a hot dog cart from the local bank at an interest rate of 2.0% per year, with a loan duration of three years. Computed using simple interest formula, his annual interest payment is $72. To fund start-up costs, Juan sold his car to buy basic supplies like hot dogs, buns, wrappers, and all the condiments (e.g., mustard, relish, onions, etc.) to make a great hot dog. For accounting purposes, Juan considers the \"supply\" cost per hot dog sold is $0.65. Juan always buys supplies in quantities of 1,000 to ensure an adequate inventory supply. Juan hired his best friend from school, Stassi, to help work the hot dog cart. Stassi works 40 hours per week (2080 hours per year) at the rate of $8.00 per hour. In order to be a good employer, Juan provides benefits to Stassi. The cost of these benefits is 29% of Stassi's total salary. Note: Juan's own compensation is based on the bottom line (i.e., profit or loss) of the business. The price of each hot dog is $3.00. Condiments are free. In addition to selling to the public, Juan has a contract with the Chicago police department --- this contract provides the local police with a $1.75 discount on the purchase of each hot dog. Further, Juan also provides free hot dogs to needy families that can't afford to pay. Sometimes, when a good customer forgets their wallet, Juan will give them a hot dog based on their promise to pay the next day (Juan truly is a good guy). As part of owning a business, Juan also has the need to purchase insurance to protect his business against the threat of fire, flood, or theft. Insurance is $160 per year. According to generally accepted accounting principles (GAAP), Juan should depreciate the hot dog cart in equal amounts over five years. Assume Juan uses Cash-based Accounting and, due to his charitable nature, was able to be considered as a tax exempt business. (See additional information below, i.e. 4a and 4b, etc.). UNIVERSITY OF ILLINOIS AT CHICAGO HIM 481 - HEALTHCARE FINANCIAL MANAGEMENT Name__________________________________________ 1 If Juan (and Stassi) sold a total of 18,500 hot dogs (includes 6,750 sold to policemen), what were the total charges (total billed charges) for the year? Answer: 2 Assuming that Juan provided an average of 45 free hot dogs per month to needy families, and adding the discount given to members of the policemen, what is the total contractual and charity allowances for the year? Answer: 3 Calculate the Net Revenue. [Net Revenue = Total Charges minus Discounts] Answer: 4 What is the annual principal payment? The annual interest payment? Answer Principal: Interest: 4.a Construct a Statement of Revenues and Expenses for Juan's hot dog business. Use the information from the scenario and from the questions above. (submit Excel spreadsheet) 4.b During the course of the year, customers \"forgot\" their wallets 375 times. Of these occasions, Juan expects to never receive payment for 350 of the hot dogs. The other 25 he is still holding out hope and believes payment will be received. Include these items on your financial statement. (submit Excel spreadsheet) 5 What is the Operating Margin? (in percent) Answer: 6 What is the amount of total fixed assets (equipment) at the end of the year? (consider 1 year depreciation) Answer: 7 Assuming no more equipment purchases, what will be the value of total fixed assets at the end of the second year? (consider 2 years depreciation)\\ Answer: UNIVERSITY OF ILLINOIS AT CHICAGO HIM 481 - HEALTHCARE FINANCIAL MANAGEMENT 8 What is the value of inventory at the end of the year? Answer: 9 What is the value of Accounts Receivable at the end of the year? See item 4b above. Answer : 10 Assuming that the Balance Sheet shows Total Assets of $5,180, and Total Liabilities of $3,400, what is the value of Net Assets