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Outpatient Therapy Center Financial Proforma-Years Year Year Year Year Year 1 2 3 4 5 5 Yr Total # OF VISITS 2,268 2,940 3,533 3,974
Outpatient Therapy Center | ||||||
Financial Proforma-Years | ||||||
Year | Year | Year | Year | Year | ||
1 | 2 | 3 | 4 | 5 | 5 Yr Total | |
# OF VISITS | 2,268 | 2,940 | 3,533 | 3,974 | 4,783 | 17,498 |
Revenue | ||||||
Gross Revenue | 907,200 | 1,223,040 | 1,528,625 | 1,787,971 | 2,238,056 | 7,684,893 |
Contractual Allowance | (544,320) | (726,486) | (898,694) | (1,040,114) | (1,287,900) | (4,497,514) |
NET REVENUE | $362,880 | $496,554 | $629,931 | $747,857 | $950,157 | $3,187,379 |
Direct Expenses | ||||||
Rent | 96,000 | 98,000 | 100,000 | 102,000 | 104,000 | 500,000 |
Common Area Maintenance Charges | 24,000 | 25,200 | 26,460 | 27,783 | 29,172 | 132,615 |
Start Up Costs Depreciation | 7,143 | 14,286 | 14,286 | 14,286 | 14,286 | 64,286 |
Technology Depreciation | 14,286 | 28,571 | 28,571 | 28,571 | 28,571 | 128,571 |
Advertising | 12,000 | 1,500 | 1,500 | 1,500 | 1,500 | 18,000 |
Salary | 248,976 | 298,954 | 335,884 | 342,884 | 383,631 | 1,610,330 |
Benefits | 63,862 | 83,329 | 86,154 | 87,950 | 98,401 | 419,697 |
Vacation Coverage | 2,160 | 2,246 | 2,336 | 2,430 | 2,527 | 11,699 |
Extended Leave | 1,151 | 1,197 | 1,244 | 5,177 | 5,384 | 14,152 |
Electric | 8,000 | 8,880 | 9,235 | 9,605 | 9,989 | 45,709 |
Phone | 1,800 | 1,872 | 1,947 | 2,025 | 2,106 | 9,749 |
Repairs & Maintenance | 500 | 1,000 | 2,000 | 4,000 | 8,000 | 15,500 |
Total Direct Expenses | 479,877 | 565,035 | 609,619 | 628,210 | 687,567 | 2,970,308 |
Indirect Expenses | ||||||
Supplies | 454 | 588 | 707 | 795 | 957 | 3,500 |
Laundry | 2,563 | 3,322 | 3,993 | 4,490 | 5,405 | 19,772 |
Total Indirect Expenses | 3,016 | 3,910 | 4,699 | 5,285 | 6,361 | 23,272 |
TOTAL EXPENSES | $482,894 | $568,946 | $614,318 | $633,495 | $693,928 | $2,993,580 |
NET INCOME/LOSS | $(120,014) | $(72,391) | $15,613 | $114,362 | $256,229 | $193,799 |
Income Percentage | -33.1% | -14.6% | 2.5% | 15.3% | 27.0% | 6.1% |
Physical Therapy Center Assignment
1. The operation will receive an interest free, non-amortizing loan of
$ 400,000 from the home office.
2. The pre-opening start up costs are $71,429 which will be
capitalized (treated as P,P,& E).
3. The investment in property, plant and equipment (AKA
technology) is $ 285,714 .
Assignment: Prepare the Cash Flow Proforma for 5 years based on
the above assumptions and Proforma Results of Operations posted on
Angel. What is the ending Cash balance?
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