Question

In: Finance

Please construct an income statement for the firm Format (monetary figures, underlines, headings) Groupings correct Correct...

Please construct an income statement for the firm

Format (monetary figures, underlines, headings)

Groupings correct

Correct numbers

Assume:

1) That 7.5% of patient services revenue is likely uncollectable

2) That the firm has equipment with the following information:

Purchase price: $3,700,000

Scrap value: $604,889

Years of use: 7

Delivery and building reading charges: $160,000

Staff to work machine: $180,000 (per year)

Date (Multiple Items)
Row Labels Average of Amount
General expense 213646.875
Grant 42717.5
Investment income 31863
Other revenue 9996.111111
Patient service revenue 59724.82245
Supplies 155944.5385
Wages 376014.3947
Grand Total 93643.85386

Solutions

Expert Solution

Income Statement in $ Notes
Patient service revenue                        59,725
Other revenue                           9,996
Total Revenue                        69,721
Staff to Work Machine                    (180,000)
Supplies                    (155,945)
Wages                    (376,014)
Cost of Goods Sold                    (711,959)
Gross Profit                    (642,238) Revenue - COGS
General Expense                    (213,647)
EBITDA                    (855,885) =Gross Profit-SG&A
Depreciation                    (465,016) Assuming straight line depreciation
=(Purchase Price + Capitalized delivery, building and staff cost - Salvage value)/Life of asset
EBIT                (1,320,901)
Grant                        42,718
Investment income                        31,863
Other Income                        74,581
Other Expenses 0 No information
EBT                (1,246,320)
Taxes 0 No information
Profit After tax                (1,246,320)

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