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The income statement for St. Joseph\'s for 2014 and 2015 are as follows. 1.What

ID: 2765891 • Letter: T

Question

The income statement for St. Joseph's for 2014 and 2015 are as follows.

1.What are the projected Net Revenues for 2016?

2. What are the projected Total Expenses for 2016?

3. What are the projected Total Expenses for 2016?

** please provide method and calucations

2014 2015 REVENUES Gross Revenues 4,054,581 5,703,885 Less: Contractual Allowances (1,324,869) (1,726,780) Less: Free Care Allowances (141,479) (181,788) Net Revenues 2,588,234 3,795,316 EXPENSES Variable Expenses Salaries 2.0 Technicians 130,233 172,846 1.0 Clerical 39,070 51,854 Total Salaries 169,303 224,700 Fringes @ 30% 50,791 67,410 Variable Nonsalary Expenses Medical Supplies 285,164 414,515 Reduction of Ambulance Cost (86,823) (115,229) Total Variable Expense 418,435 591,395 Fixed Expenses Cryogens 50,646 67,218 Equipment Maintenance Contracts 158,485 210,341 Utilities 86,823 115,229 Legal and Accounting (incl. billing) 57,881 76,820 Insurance 86,823 115,229 Office Supplies 14,470 19,205 Marketing 144,704 192,051 Facility Lease 289,406 384,100 Interest 16,554 18,293 Miscellaneous 14,470 19,205 Total Fixed Expense 920,262 1,217,690 Total Expenses 1,338,696 1,809,085 Net Operating Income 1,249,538 1,986,232 Less: Deprecation Expense (500,000) (632,000) Net Operating Profit of Loss 749,538 1,354,232

Explanation / Answer

Statement of Income St. Joseph's PARTICULARS                    2,014                    2,015 INCREASE / DECREASE INCREASE RATIO BUDGETED 2016 REVENUES Gross Revenue      4,054,581.00      5,703,885.00                        1,649,304.00                             0.41            5,716,959.21 Less : Contractual Allowances (1,324,869.00) (1,726,780.00)                          (401,911.00)                             0.30            1,543,578.99 Less : Free Care Allowances       (141,479.00)       (181,788.00)                            (40,309.00)                             0.28               171,508.78                    (0.33)                    (0.30)                            0.27                    (0.03)                    (0.03)                            0.03                                              -   Net Revenue      2,588,232.64      3,795,316.67                        1,207,084.03                             0.47            3,804,701.98                                              -   EXPENSES                                              -                                                -   Variable Expenses Salary                                              -   2 Technicians         130,233.00         172,846.00                              42,613.00                             0.33               173,209.89 1 Clerical            39,070.00            51,854.00                              12,784.00                             0.33                  51,963.10 Total Salary         169,303.00         224,700.00                              55,397.00                             0.33               225,172.99                                              -   Fringe @ 30%            50,791.00            67,410.00                              16,619.00                             0.33                  67,552.03                                              -   Variable Non salary Expenses                                              -   Medical Supplies         285,164.00         414,515.00                            129,351.00                             0.45               400,187.14 ( 0.07 * Gross Revenue )                      0.07                      0.07                            0.07 Reduction of Ambulance Cost         (86,823.00)       (115,229.00)                            (28,406.00)                             0.33             (115,474.59)                                              -   Total Variable Expenses         418,435.00         591,396.00                            172,961.00                             0.41               577,437.57                                              -   Fixed Expenses                                              -   Cryogens            50,646.00            67,218.00                              16,572.00                             0.33                  67,359.18 Equipment Maintenance Contracts         158,485.00         210,341.00                              51,856.00                             0.33               210,785.05 Utilities            86,823.00         115,229.00                              28,406.00                             0.33               115,474.59 Legal and Accounting            57,881.00            76,820.00                              18,939.00                             0.33                  76,981.73 Insurance            86,823.00         115,229.00                              28,406.00                             0.33               115,474.59 Office Supplies            14,470.00            19,205.00                                 4,735.00                             0.33                  19,245.10 Marketing         144,704.00         192,051.00                              47,347.00                             0.33               192,456.32 Facility Lease         289,406.00         384,100.00                              94,694.00                             0.33               384,909.98 Interest            16,554.00            18,293.00                                 1,739.00                             0.11 Miscellaneous            14,470.00            19,205.00                                 4,735.00                             0.33                  19,245.10 Total Fixed Expenses         920,262.00      1,217,691.00                            297,429.00                             0.32            1,201,931.64 Total Expenses      1,338,697.00      1,809,087.00                            470,390.00                             0.35            1,779,369.21 Net Operating Income      1,249,535.64      1,986,229.67                            736,694.03                             0.59            2,025,332.76 Less Depreciation         500,000.00         632,000.00                            132,000.00                             0.26               571,695.92 ( 0.12 / 0.11 * Gross Revenue )                      0.12                      0.11                          (0.10) Net Operating Income         749,535.64      1,354,229.67                            604,694.03                             0.81            1,453,636.84