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 1,354,232Explanation / 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
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