Project #159666 - Finance sheets

Business Tutors

Subject Business
Due By (Pacific Time) 12/16/2016 12:00 am

 

All charts should be incorporated into your paper or attached if hand drawn

 

Determine the amount of net operating income that would result for a hospital whose payer mix and expected volume (100 cases) is as follows:

30 Medicare cases

 

pay $2,000 per case

   

30 Blue Cross Blue Shield cases

 

pay $2,200 per case

   

20 commercial cases

 

pay 100 percent of charges

   

10 Medicaid cases

 

pay average cost

   

8 self-pay cases

 

pay 100 percent of charges

   

2 charity cases

 

pay nothing

   
         

Average cost per case is expected to be $2,200, and the average charge per case is $2,500

 

I should see the following:  (show your work)       (45 points)

 

A total for gross patient revenue – read this question carefully

 

A total for deductions for gross patient revenue – read this question carefully

 

     Net patient revenue

 

Total expenses

 

Excess of revenue over expenses      

 

 

1.     Calculate gross patient revenue, deductions from gross patient revenue, net patient revenue, total expenses, and excess of revenues over expenses above.

2.     Define revenue  (5 pts)

3.      Define fee for service, discounted fee for service, charity services, and payment before service is delivered.  ( all written assignments must be in APA format)    (15 pts)

 

Time Value of Money  (TVM)

 

Calculate the Future Value of $1 in each of these 3 projects    (15 pts)

 

 

 

 

Calculate the Present Value of each of the Projects below:       (15 pts)

 

Future value and present value concepts are extremely important to the role of financial management and impact cash flow.  The response and discussion activities for this objective may require research on the topic of time value in finance.

 

Explain the role of time value in finance and evaluate the impact it has in financial management.  Define TVM    (15 pts)

 

 

 

 

 

 

 

 

 

Income Statement Preparation:  ( 30 pts)

 

Prepare an Income Statement, in proper format, for 2015 for Johnson Medical Supplies (JMS) from the following information:

·       Salaries                          $70,000

·       Insurance                            $700

·       Utilities                           $3,500

·       Gas/Auto                         $5,750

·       Office Supplies               $7,250

·       Revenue                      $175,000

·       Rent                              $12,000

·       Maintenance                  $50,000

 

Calculate, define, and discuss the operating expenses, operating profit, and profit percentage.  Discuss what an income statement is.

(20 pts)

 

Did JMS have a good year? Why/Why not?   (10 pts)

Industry average?

 

 

Complete the ratios listed based on the following Income Statement and Balance Sheet.

 

3.5 pts each or 38.5 pts in total

     
                 

ABC Company Income Statement

 

Last Year

     
             

Quick Ratio

 

Sales

   

$1,000,000

 

$900,000

   

 

             

Current Ratio

 

Cost of Goods Sold

   

$750,000

 

$650,000

   

 

Gross Profit

   

$250,000

 

$250,000

 

Accounts Receivable Turnover

 

               

 

Operating Expenses

           

Inventory Turnover

 

   Selling Expenses

 

$50,000

         

 

   Administrative Expenses

 

$85,000

       

Net Profit on Sales

 

       Total Operating Expenses

 

$135,000

 

$127,000

   

 

             

Gross Profit Margin

 

Operating Income

   

$115,000

 

$123,000

   

 

   Interest Expense

   

$17,500

 

$17,500

 

Return on Assets

 

               

 

Net Income before Taxes

   

$97,500

 

$105,500

 

Return on Equity

 

   Income Tax Expense

   

$34,125

 

$36,925

   

 

             

Working Capital

 

Net Income after Taxes

   

$63,375

 

$68,575

   

 

             

Debt to Equity

 

               

 

ABC Company Balance Sheet

     

Times Interest Earned

 

Current Assets

             

 

   Cash

   

$5,500

 

$4,950

     

   Accounts Receivable

   

$21,000

 

$18,900

   

 

   Inventory

   

$17,500

 

$15,750

     
                 

Total Current Assets

   

$44,000

 

$39,600

     
                 

Non-Current Assets

               

   Machinery & Equipment

   

$100,000

 

$90,000

     

   Furniture & Fixtures

   

$15,000

 

$13,500

     

   Transportation Equipment

 

$25,000

 

$22,500

     

   Accumulated Depreciation

 

$17,500

 

$15,750

     
                 

Total Non-Current Assets

   

$122,500

 

$110,250

     
                 

Total Assets

   

$166,500

 

$149,850

     
                 

Current Liabilities

               

   Accounts Payable

   

$25,000

 

$22,500

     

   Notes Payable

   

$15,500

 

$13,950

     

   Wages Payable

   

$1,200

 

$1,080

     
                 

Current Liabilities

   

$41,700

 

$37,530

     
                 

Non-Current Liabilities

               

   Long-Term Notes

   

$27,000

 

$24,300

     
                 

Total Liabilities

   

$68,700

 

$61,830

     
                 

Stockholders' Equity

               

   Retained Earnings

   

$65,000

 

$58,500

     

   Common Stock

   

$32,800

 

$29,520

     
                 

Total Equity

   

$97,800

 

$88,020

     
                 

Total Liabilities & Equity

   

$166,500

 

$149,850

     
                 

 

 

 

 

 

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