Pressure from insurance companies

Assignment Help Financial Accounting
Reference no: EM13953058

Modern Healthcare, a group practice clinic with 10 physicians, had the following income in 2014:

Revenue $3,350,000 Less operating expenses:

Salaries Physicians $1,250,000 Nurses 150,000 Nursing aide 71,500 Receptionist 46,000 Accounting services 48,000 Training 113,000 Supplies 258,000 Phone and fax 3,500 Insurance 272,000 Depreciation 245,000 Utilities 22,000 Miscellaneous 63,000 Total operating expenses 2,542,000 Income before taxes 808,000 Less taxes on income 282,800 Net income $525,200 The following changes are expected in 2015:

1. The clinic is expecting a 2 percent decline in revenues because of increasing pressure from insurance companies.

2. Physicians are planning to hire a physician assistant at a salary of $51,000 per year.

3. Training costs are expected to increase by $18,000.

4. Supplies are expected to increase to be 10 percent of revenue.

5. Phone, fax, and insurance amounts will stay the same.

6. Depreciation expense will increase by $23,000 per year, since the clinic is planning to purchase equipment for $125,000.

7. Utilities and miscellaneous expenses are expected to increase by 5 percent next year.

8. Taxes on income will be 35 percent. Prepare a budgeted income statement for Modern Healthcare for the year 2015.

Reference no: EM13953058

Questions Cloud

Expressing yourself informally : Imagine that you have created a blog where you post about various issues important to you and your friends and others studying in your field. Write a 1 - 1 and 1/2 page double spaced blog post that educates your audience about an issue that the artic..
Calculate the odds ratio associated with not using helmet : Compute and compare the proportions of head injury for the group with helmets versus the group without helmets. What would be your conclusion?
The main techniques of capital budgeting : the main techniques of capital budgeting Can you briefly explain each of them
Prepare an advisory report for the management : Following the AIB Assignment Format, prepare an advisory report for the management that includes a theoretical background to the three investment decision criteria you have used for analyses.
Pressure from insurance companies : The clinic is expecting a 2 percent decline in revenues because of increasing pressure from insurance companies
The reasons to create pricing policies : Choose one of the buyer types (value driven, price driven, brand driven, and convenience driven) and one of the reasons to create pricing policies (price objections, price increases, economic downturn, and promotional pricing)
Calculate the "value at risk" for investment of $20,000 : What is the probability that tomorrow's return on your investment in ABC is somewhere between -1% and +.5%?
Calculate the odds ratio associated with efm exposure : Compute and compare the proportions of cesarean delivery for the two exposure groups. What would be your conclusion? Calculate the odds ratio associated with EFM exposure. Does this result support your conclusion in part (a)?
How is an infrared signal generated in a remote controller : How is an infrared signal generated in a remote controller of a TV?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd