The construction cost of the ASC is $225 per square foot. Equipment is 35%% of the construction cost. You are to create an original spreadsheet for the cash flow budget on a monthly basis for 36 months. You are to present the budget as if you were presenting to a group of potential investors.

1.) 2,200 square feet per OR.

2.) 4 ORs

3.) Bad Debt 2%

4.) FTEs 6 per 1,000 cases Salary $48,000 per FTE. Employee Benefits 22%.

5.) Clinical supplies 12% of Net Revenue

6.) Collections 30% of Billings

7.) Net Revenue $3,000 per case

8.) Purchased services $35.500 per month

9.) Management Fee 5% of Net Revenue

10.) Malpractice $40,000 per year

11.) Other Expense is 5% of net revenue

12.) Janitorial $.28 per square foot per month

13.) Utilities $.36per square foot per month

14.) Lease payment is the sum of the monthly payment for the building financing and the equipment financing.

15.) Building cost per square foot $225

16.) Interest on building loan is 9.5% on a 10 year note.

17.) Interest rate on the equipment is 10.5% for a 7 year note.

18.) Equipment cost is 35% of the building cost.

19.) Student determines the ramp up of the cases per month.

20.) Maximum number of cases per OR 1000 per year