IKAZ is an Informatics Financial consultancy, led by group of brilliant Health

Informatics experts who recently graduated from DePaul University from the

class of Winter $2024.$ These consultants saw an opportunity in the market that

would give IKAZ financial boost to grow its revenues, providing several

consulting type services for optimization and financial growth.

IKAZ is now partnering with IZAR Hospital in Chicago. IZAR saw the opportunity

to invest in this consulting firm to gain reputation and enhance growth

markets. Partnership gave $50-50$ control of financial decision making. The

strategic goal of IKAZ informatics under the banner of IZAR is to grow its

revenues by $40\%$ in Year $1$ and $55\%$ in year $2.$ What would be the various

financial statements look like with growth in Year $1$ and respective growth in

Year $2.$ As you did in Assignment $1,$ you will do the interpretations of Financials

stated below and show the growth from question $2.$

$3.$ A Health informatics consulting company called IKAZ Health is providing

financial services to Hospitals. They provide hospitals in financial statements;

right sizing of technologies needs across hospital locations. IKAZ team also

provides clinical quality, service performance, and optimization through data

analytics. IKAZ has the following financial information made available to you.

Please prepare various statements based on the information available to you

starting with current year $(2024),$ then show the growth for Year $1$ and Year $2$

as stated in question $2.$

A$.$ Annual $(2024)$ Income from providing consulting services to hospitals $=$

$$1,850,000($ This fee came from either upfront contract fee or upon

delivery of consulting services, does not include month fee$)$

B$.$ Ten $(10)$ Contracted hospital clients, each paid IKAZ Health monthly Fees

$=$ $ $10,800($ Contract Expiration is $36$ months$)$

C$.$ Employees salaries & benefits for the year $2024=$ $$300,000/$ per annum $($ If

you are giving an employee raise, year over year, please clarify in your

comments, Is cola raise or market competitive$)$

D$.$ IKAZ provided company cars $3$ of them $=$$$90,000/$per annum

E$.$ Annual employee Travel and living expenses for visiting clients $-$ $$25,000$

$/$per annum

F$.$ IKAZ Health informatics Total administrative expenses $=$ $$10,000/$per annum

G$.$ Capital expenses towards Software & Technologies $($Analytics & Graphics$)$

$=$ $$40,000/$per annum

H$.$ Advertising and Marketing to Hospitals through an outsource firm $=$

$$10,000/$per annum

I. All IKAZ employees worked from home therefore Headquarters expenses $=$

$$0/$per annum

J$.$ All items not listed here are $=$ $$0//$per annum

Accounting for Federal Grants

K$.$ IKAZ received federal funding to provide a standard based limited

consulting services to Government providers, the grant is available only for

up to $24$ months. The grant is set aside in a separate accrued account. Six

government hospitals have signed up for the current year. Standard

informatics package includes a$)$ E$.$H$.$R optimization b$)$ RCM Denials

optimization c$)$ Clinical decision support standardization d$)$ Analytics &

Reporting e$)$ health data privacy audit and review f$)$ HIE interoperability

among government health systems among other services. The standards

package is $$110$K as a one$-$time charge.

$4.$ Make your own Accounting interpretations and conclude on the various

statements regarding IKAZs financial health, stability, performance, and

future.