What was the equity at the end of the year

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Q1. Following is the financial projection information for the new proposed Pain Free Clinic:

Revenues 20,000 visits @$20 per visit

Expenses:

Wage $170,000

Rent 6,000

Depreciation 40,000

Utility 2,000

Supplies 80,000 (this is the total cost assuming 20,000 visits)

Insurance 10,000

All the above-listed costs (expenses) are fixed with the exception of supplies. Supplies is considered variable and tied to the volume of visits. The clinic is a not-for-profit concern.

Construct the project P&L?

What number of visits is need to breakeven?

What number of visits are required to realize a profit of $150,000?

Q2. At the beginning of the year BEBetter Clinic's assets were $600,000 and its equity was $199,000. During the year, assets decreased by $15,000 and liabilities increased by $45,000. What was the equity at the end of the year?

Reference no: EM133145241

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