• Identify how many of the assumption items listed in the example for this week can be found in the retail pharmacy proposal worksheets.

capital is proposed to be obtained from hospital sources, and no borrowing would be necessary. In addition, the total capital expenditure is projected to be retrieved through operating cash flows before the end of year 1. A Exhibit 29-1 Sample General Hospital 3-Year Retail Pharmacy Profitability Analysis Year 1 Year 2 Year 3 Rx Sales 2,587,613 2,692,152 2,828,375 Cost of Goods Sold 2.047 950 2.088.909 2.151.576 Gross Margin 539,663 603,243 676,799 GM% 20.9% 22.4% 23.9% EXPENSES 192.000 Salaries and Wages 197,760 203,693 Benefits 38,400 39,552 10.739 12,000 14,100 17.280 Materials and Supplies 1.1.100 17,280 20,736 Contract Services and Fees Salaries and Wages 192,000 197,760 203,593 Benefits 38,400 39,552 40,739 Materials and Supplies 12,000 14,400 17,280 Contract Services and Fees 14,400 17,280 20,736 Depreciation and Amortization 15,333 15,333 15,333 Interest Provision for Bad Debts 25,876 26,922 28,284 Misc. Exp. 3.600 4,320 5.184 301,609 Total Expense 315,567 331,218 Net Income 238,053 287,676 345,550 Operating Margin 9.29% 10.79 12.2 Cash Flow Year Year 2 capital is proposed to be obtained from hospital sources, and no borrowing would be necessary. In addition, the total capital expenditure is projected to be retrieved through operating cash flows before the end of year 1. A Exhibit 29-1 Sample General Hospital 3-Year Retail Pharmacy Profitability Analysis Year 1 Year 2 Year 3 Rx Sales 2,587,613 2,692,152 2,828,375 Cost of Goods Sold 2.047 950 2.088.909 2.151.576 Gross Margin 539,663 603,243 676,799 GM% 20.9% 22.4% 23.9% EXPENSES 192.000 Salaries and Wages 197,760 203,693 Benefits 38,400 39,552 10.739 12,000 14,100 17.280 Materials and Supplies 1.1.100 17,280 20,736 Contract Services and Fees Salaries and Wages 192,000 197,760 203,593 Benefits 38,400 39,552 40,739 Materials and Supplies 12,000 14,400 17,280 Contract Services and Fees 14,400 17,280 20,736 Depreciation and Amortization 15,333 15,333 15,333 Interest Provision for Bad Debts 25,876 26,922 28,284 Misc. Exp. 3.600 4,320 5.184 301,609 Total Expense 315,567 331,218 Net Income 238,053 287,676 345,550 Operating Margin 9.29% 10.79 12.2 Cash Flow Year Year 2