Using the following random-order accounts and balances, develop a balance sheet in the correct format for the Clinic.

Utilities payable 7,000

Equipment 145,000

Other long term debts 37,000

Other long term Assets 52,000

Long-term Investments 175,000

Long-term debts 130,000

Equity ?

Cash 60,000

Accounts Receivable 15,000

Accounts Payable 30,000

B. Using the above information, what is the working capital for the Clinic? Debt Ratio?

Following is the financial projection information for the new proposed Pain Free Clinic

Revenues 20,000 visits @$20 per visit

Expenses:

Wage $170,000

Rent 6,000

Depreciation 40,000

Utility 2,000

Supplies 80,000 (this is the total cost assuming 20,000 visits)

Insurance 10,000

All the above-listed costs (expenses) are fixed with the exception of supplies. Supplies is considered variable and tied to the volume of visits. The clinic is a not-for-profit concern.

• Construct the project P&L
• What number of visits is need to breakeven
• What number of visits are required to realize a profit of $150,000

During 2017 the accounting clerk recorded the following transactions. Be sure to total columns.

1. Billed patients for services performed: $2,900,000
2. Staff salaries earned however not paid: $3,500
3. Paid staff weekly salary: $2,500
4. Recorded annual depreciation on the equipment, $4,000
5. Purchased medical supplies on credit $7,000
6. Was approved for and received monies from a bank loan, $8,000
7. Received from a patient previously billed for services, $700,000
8. Based on past experience, estimated bad debts for the year: $31,000
9. Made the first payment on the loan secured in transaction in (6), $2,000
10. Used medical supplies in patient care $4,000

Prior to these transactions, the accounts had the following balances:Cash: $80,000; Accounts receivable: $235,000; Allowance for doubtful accounts: $18,000; Supplies inventory: $124,000; Equipment: $1,400,000; Accumulated depreciation: $300,000; Accounts payable: $31,000; Bank Loan Payable: $490,000;

Directions: Using the beginning balances in the accounts, indicate the effect on the accounts resulting from the transactions, and compute the ending balance in each account. You may need to add accounts.

Clinic has 2 support departments and three patient services departments. The direct cost of each of the support departments are as follows:

Administration $2,500,000

Maintenance 1,200,000

These costs must be allocated to Albany Clinic's 3 revenue producing departments. Two cost drivers are under consideration: patient services revenue and square footage.Selected data for the 3 patient services departments are as follows:

Patient Services Department	Patient Revenue	Space (square feet)
Routine Care	$25,000,000	500,000
Intensive Care	$11,000,000	35,000
Ambulatory Care	$ 1,500,000	175,000
Total for Revenue depts	$37,500,000	710,000

Assume the Clinic uses the direct method for cost allocation.

1. What is the cost pool?
2. What is the allocation rate if: (1)patient service revenue is used as the cost driver; (2) square footage is used as the cost driver?
3. What is the dollar allocation to each patient services department if patient services revenue is used as the cost driver?
4. What is the dollar allocation to each patient services department if square footage is used as the cost driver?

1. At the beginning of the year Clinic's assets were $600,000 and its equity was $199,000. During the year, assets decreased by $15,000 and liabilities increased by $45,000.What was the equity at the end of the year?