Construct p&l statement , Cost Accounting

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

Revenues (10,000 visits)

$400,000

Wages & Benefits

$220,000

Rent

$5,000

Depreciation

$30,000

Utilities

$2,500

Medical Supplies

$50,000

Administrative Supplies

$10,000

Assume that all costs are fixed, except supply costs, which are variable.  Furthermore, assume that the clinic must pay taxes at a 30% rate.

a. Construct the clinic's projected P&L statement.

b. What number of visits is required to break even?

c. What number of visits is required to provide you with an after-tax profit of $100,000?

Posted Date: 2/27/2013 7:11:38 AM | Location : United States







Related Discussions:- Construct p&l statement , Assignment Help, Ask Question on Construct p&l statement , Get Answer, Expert's Help, Construct p&l statement Discussions

Write discussion on Construct p&l statement
Your posts are moderated
Related Questions
1. A fellow student says to you: "The statement of cash flows is the easiest of the basic financial statements to prepare because you know the answer before you start. You compa

1. Why are marginal costs increasing? Why are they not always constant? You may give examples in some industries or just state two reasons at least.

In January, 2008, Sanford Corporation purchased a patent for a new product for $1,200,000. The patent was valid for fifteen years but it was estimated to have a useful life of ten

raw an organization chart of any actual or hypothetical manufacturing organization to show the position of management/cost accounting department within an organization and discuss

BEP- Break Event Point: It shows no Loss and no Profit The level of activity at which, total revenues equivalent total costs. A point at which there is no profit and no loss.

Interstate Manufacturing produces brass fasteners and incurred the following costs for the year just ended: Materials and supplies used Brass $75,000 Repair parts 16,000

Cost Classification Bases Costs can be classified on either more or one of the given bases as: a) Are the costs dependent on the level of output as like variable or are the


Regression Analysis Method of Cost Estimation It includes estimating the cost function by utilizing past data or the dependent and the independent variables. Hence the cost fu

Compare the American Institute of CPAs' (AICPA) Statements on Tax Standards (SSTS) and the Treasury Department Circular 230 rules to practice before the Internal Revenue Service (I