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3 years ago

You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows:

Business

1 answer:

enot [183]3 years ago

7 0

Answer:

a. clinic's projected P&L statement.

Revenues 400,000

Less Expenses:

Wages and benefits (220,000 )

Rent (5,000 )

Depreciation (30,000 )

Utilities (2,500 )

Medical supplies (50,000)

Administrative supplies (10,000)

Net Income or (loss) before tax 182,500

Income tax at 30% (54,750)

Income or (loss) 127,750

b. 9,184 visits

c. 12,125 visits

Explanation:

Fixed Costs = 220,000 + 5,000 + 30,000 + 2,500 + 54,750

= $312,250

Contribution = Sales - Variable Costs

= $400,000 - ($50,000+$10,000)

= $340,000

Contribution per unit = $340,000 / 10,000 visits

= $34

Break even point = Fixed Costs / Contribution per unit

= $312,250 / $34

= 9,184 visits

Units for a Profit target = Fixed Costs + Target Profit / Contribution per unit

= ($312,250 + $100,000) / $34

= 12,125 visits

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A make-to-order operation would be primarily concerned with:

Butoxors [25]

I would say that such an operation would be primarily concerned with making things say clothes according to the wishes of the client and its success would depend on how closely the product matched the desires of the client and satisfied their needs.

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3 years ago

Read 2 more answers

Huprey Co. is the defendant in the following legal claims. For each of the following claims, indicate whether Huprey should (a)

Ulleksa [173]

Answer:

Record a liability.
Disclose in notes.
Have no disclosure.

Explanation:

A contingent liability should only be recorded if the likelihood of it happening is known and the value can reasonably be estimated.

In the first scenario, it is likely that Huprey will lose so the likelihood is known. The value can also be reasonably estimated to be $1,070,000 so this should be recorded as a liability.

In the second scenario, the likelihood is known but the value cannot be estimated. In such a case, simply disclose this possibility in the notes of the financial statement.

For the third scenario, the possibility of the liability being incurred is remote so there is no need to either record or disclose the liability.

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3 years ago

Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% return fro

lutik1710 [3]

Answer:

A. NPV for A= $61,658.06

NPV for B = $25,006.15

B. 1.36

1.17

Project A

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calcuated using a financial calculator

for project A :

Cash flow in

Year 0 = $(172,325)

Year 1 41,000

Year 2 47,000

Year 3 85,295

Year 4 86,400

Year 5 56,000

I = 10%

NPV = $61,658.06

for project B

year 0 = $ (145,960)

Cash flow in

Year 1 27,000

Year 2 52,000

Year 3 50,000

Year 4 71,000

Year 5 28,000

I = 10%

NPV = $25,006.15

profitability index = 1 + NPV / Initial investment

for project A, PI = $61,658.06 / 172,325 = 1.36

For project B, PI = $25,006.15 / 145,960 = 1.17

The project with the greater NPV and PI should be chosen. this is project A.

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

3 0

3 years ago

Tom and Mark tell Susan that they are considering expanding store hours and advertising. They wish to concentrate their efforts

emmainna [20.7K]

Answer:

Employees and Independent Contractors

a) The Differences are:

1. Nature of each position: The employee is a worker who is engaged in a contract of service with an employer. She earns a periodic salary based on a fixed time per week, e.g. 40 hours per week, Monday to Friday. On the other hand, a contractor engages in a contract for service. She is engaged for a fee to carry out a specified assignment or project. The independent contractor is self-employed. She can work for many other organizations and for any number of hours.

Hours worked: The employee works some fixed hours per day and per week. An independent contractor does not have any fixed hours of work. She can choose to work more than 40 hours per week.

Control by Employer: For the employee, the employer dictates most of the details about the work. She can be given any work by the employer. She enjoys sick leave and other emoluments. She lacks discretion on which tasks to work on. She does not have "authority to hire assistants." The independent contractor does her work to suit her convenience, but ensures that the customer is satisfied with her work to enable contract renewal.

b) Examples of Employees and Independent Contractors from the case study:

i) Employees:

1. Jack Walker, Grant Worthington, and Phil Costello, salespeople

2. Cooke, an administrative assistant

ii) Independent Contractors:

1. Martha Winslow, a seamstress by trade

2. Stephanie Russo, Web Advertising Consultant

3. Luck Johnson, Cleaner

Explanation:

The general rule for differentiating the two types of workers is that an independent contractor directs the result of the work and not what will be done and how it will be done. Her earnings (fees) are subject to Self-Employment Tax. The employee does not control the result of her work and the tasks, but can control how it will be done. Her earnings are subject to Paye Tax.

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4 years ago

Rohan wants to buy part of a company, and is interested in stocks. He knows that his favorite company, Apple, is traded on the s

katovenus [111]

Answer:

Yes, he can buy stock in Apple.

Explanation:

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3 years ago