Newtown Urgent Care, Inc. a hypothetical start$-$up$,$ opened for business on April $1$ this year. Newtown

Urgent Care is a walk$-$in medical facility.

You are the founder and president. You have not yet hired an accountant, but your bank is asking for an

income statement and balance sheet for the first month of operation.

Transactions:

You started your company with $$500,000$ that you raised by selling stock in Newtown Urgent Care,

Inc.. to your family and friends as well as an angel investor.

You purchased an X$-$ray machine, an ultrasound scanner and some other major equipment for

$$390,000,$ paying cash. You believe these devices will last five years before you replace them. At

the end of the $5$ years, you think you can sell them for a total of $$15,000.$

Knowing that you would need additional funds, you took a $$250,000$ loan at $12\%$ annual interest

rate from the bank, using the equipment as collateral.

At the start of the month you spent $$10,000$ on supplies used for treating patients, for which you

were invoiced. This is one month of supplies.

A PR agency charges you $$2500$ for the promotion services $($they hope for more business as you

grow$).$ You plan on paying the bill next month.

Rent for the space you have leased is $$5,000$ a month, which you paid.

The first month business starts slow. You bill insurance companies and patients $$10,000.$

You pay your employees $$10,000$ at the end of the month.

You receive payments of $$1,000$ from insurance companies.

You pay the interest on the loan owed for the month.

You send payment of $$1,500$ towards the supplies that you bought earlier in the month.

You record one month of depreciation on the equipment.

Newtown Urgent Care, Inc.

Income Statement

Month ended April $30,20$xx

Revenues

Operating Expenses

Rent

Wages

Advertising and Promotion

Supplies

Depreciation

Total operating expenses

EBIT $($Loss$)$

Interest expense

Net Profit $($Loss$)$Newtown Urgent Care, Inc.

Balance Sheet

April $30,20$xx