The Earnings And Loss Statement

1. Using the historical data as a guide, construct a pro forma (forecasted) profit and loss statement

The economic cost for the clinic due to waiting times rise. By taking more time to process the patients, the clinic cannot reach its potential of seeing 108 patients. This of course results in less revenue. Currently the clinic operates at 74% capacity, resulting in a loss of 26% revenue.

4. Explain how the revenue from medical (pharmacy) supplies is currently handled for profit and loss reporting purposes. Is there a problem with the current system? Is there a better way of reporting this revenue? If so, what is it?

#1 With no change in volume (utilization), is the clinic projected to make a profit?

| ▪ increase more women patients; additional 2000 visits per year▪ increase profit, net profit is $62,400(See Exhibit 3)

With respect to Columbia Memorial Hospital, a profit and loss statement must be done in order for the clinic to know if they should continue expanding or shut down. A pro forma profit and loss statement advances the company's proposal for future revenues and expenses. Various companies have numerous approaches they use to reach how they will deliver the goods financially for the future. Separate scenarios have been investigated.

Monthly 50% Monthly Rooms $2,956,500 $2,217,375 $1,478,250 Leases $180,000 $135,000 $90,000 TOTAL REVENUE $3,136,500 $2,352,375 $1,568,250 Expences TOTAL VARIABLE COSTS $454,000 $340,500 $227,000 TOTAL FIXED COSTS $1,403,000 $1,403,001 $1,403,002 TOTAL EXPENSE BEFORE IT $1,857,000 $1,743,501 $1,630,002 EBIT

Using the average data given (2010) of 45 patients per day, average $130 revenue per patient, and a cost of $3.50 per patient. The Forecasted P&L Statement is shown below.

Total Patient Revenues at $31,231K were over budget by $1,009K or 3.3%. Inpatient Revenues at $6,448K were $116K over budget or 1.8%. Inpatient Admissions were under budget by (7.2%), Patient Days were under budget with a unfavorable variance of (13.6%), Deliveries were (15.6%) under budget and Routine Services revenue was under budget by (16.5%). Inpatient Ancillary Service revenue

When figuring out the costs for revenues you need to figure out how much the network will earn from all the scans done throughout the five year period. When configuring revenue associated with scans you need to look for total payments which are nineteen thousand and six hundred and ninety then multiple total payments by fifty weeks. This equals out to nine hundred and eighty four thousand and five hundred annually, then multiple the annual revenue by five years. The total scan revenue for five years comes out to four million and nine hundred and twenty two thousand and five hundred dollars. The next amount added to the revenues for the physician’s network is the amount the MRI machine can be salvaged for which are seven hundred and fifty thousand dollars. The next equation to configure is the total revenue costs. How you configure the total revenue costs is by adding the total scan revenues and the salvage costs, which equals out to five million and six hundred and seventy two thousand and five hundred dollars. The final equation is to figure out the net revenues of the MRI machine and that is to take the total revenues and subtract the total expenses for five years. The total revenue is five million and six hundred and seventy two thousand and five hundred and you then subtract the total expenses, which is

Clinical labor costs are the primary expense of the clinic. During the high season (December through March), these costs run $150,000 a month, but some of the clinical staff work only seasonally, so clinical labor costs drop to $120,000 a month in the remaining months (Gapenski and Pink, 2009). The clinic pays fixed general and administrative expenses, including clerical labor, of approximately $30,000 a month, while lease obligations amount to $12,000 per month. These expenditures are expected to continue at the same level throughout the forecast period. The clinic’s miscellaneous expenses are estimated to be $10,000 monthly.

Projected revenue and expenses are presented on a profit center basis. There are two profit

The computation for the 2017 statement analyzed sales profits projecting at 90% on books sold and a variable costing statement assuming that the price

In this report will analyse budgets and make appropriates decisions and explainn the calculation of unit costs and make pricing decisions using relevant informations. And than this report will assess the viability of a project using investment appraisal techniques and discuss the main financial statements. Compare appropriate formats of financial statements for different types of business. Interpret financial statements using appropriate ratios and comparisons, both internal and external.

According to the formula of Assets = Equity + Liabilities; assets and equity could increase while liabilities remain the same. The