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GRANT CLINIC, INC. Financial Plan and Presentation Grant Clinic, Inc. serves a suburban community with a population of about 24,000, of which 25% are expected to become patients of the clinic. Approximately 6 miles from Grant Clinic, Inc., a new residential community targeted for young families is scheduled to complete construction next year with full occupancy within three years. A major hospital system has just announced plans to build a medical center with physician office space in a nearby community. Grant Clinic, Inc. physician salaries average $11,000 per month. The current practice is all fee-for-service and includes both Medicare and Medicaid patients. After adjustments and allowances, the net average charges are expected to be $50 per visit. The current flexible budget for the clinic is as follows: Variable Expenses per Visit Fixed Expenses per Month Nurses' salaries 0 $18,000 Administrative and technical salaries 0 $19,000 Medical supplies $6.00 0 Rent 0 $4,000 Service bureau for medical and financial records $1.00 $2,000 Other operating expenses $3.00 $6,000 Planned purchases of medical supplies are $16,000 per month. Supplies are paid in the month following purchases. Service bureau expenses are paid in the month following service; all other expenses are paid in the month of incurrence. The clinic has already made plans to purchase equipment that will be depreciated on the straight-line basis over 5 years. A $75,000 line of credit has been arranged at the bank in the event it is needed. Assume a desired minimum cash balance of $10,000. You may assume that interest on any amounts borrowed is already considered in other operating expenses. The statement of financial position at the end of the previous fiscal year is as follows: GRANT CLINIC, Inc. Statement of Fiscal Position, December 31, XXXX Assets Cash $20,000 Patient Receivables 240,000 Supplies 8,000 Total $268,000 Equities Accounts Payable

: Supplies $6,000 Accounts Payable: Service Bureau 4,000 Total Liabilities $10,000 Partners' Equity 258,000 Total Equities $268,000 The following actual events were recorded for Grant Clinic, Inc. for the current fiscal year. 1. Patient visits amounted to 28,000 with an average billing rate of $48 per patient visit. 2. Expenses were as follows: Physician's salaries $552,000 Nurses' salaries 195,000 Administrative and technical salaries 198,000 Medical supplies 159,000 Rent 48,000 Service bureau (fixed portion, $24,000) 52,000 Other expenses (fixed portion, $70,000) 158,000 Depreciation 16,000 3. At the end of the year, payables for supplies were $10,000, payables for the service bureau were $2,500, inventory of supplies was $4,000, and patient receivables were $160,000; equipment was purchased as planned, but only $5,000 was borrowed in the line of credit (ignore interest on the borrowing). Questions: 1. Prepare a spreadsheet showing the financial data of this Grant Clinic's Financial Plan. 2. Choose one of the financial ratio and compute and explain the ratio outcome based on the subjected organization's financial data.

o Answer the following questions:
What external pressures will Grant Clinic, Inc. face in the next 3 years?
What corrective measures will you recommend?
What preventive measures will you recommend?
How do you plan to adjust for risk?
What opportunities for growth exist?

o Include the following elements in your presentation:
A minimum of one table (spreadsheet)
A minimum of one ratio (calculation)
A minimum of four references
just need the following answer for the presentation as soon as possible, thank you.

•How do you plan to adjust for risk?
•What opportunities for growth exist?
o Include the following elements in your presentation:

A minimum of 3 tables (spreadsheet) : Income Statement, Cash Flow and Balance Sheet
A minimum of 4 ratios (calculation): Operating Margin, Nonoperating Margin, Total Asset Turnover, and Equity Financing Ratio

  • accounting -

    You're kidding, right?

    What kind of HELP do you need? You need to be specific when asking questions here.

    If all you do is post your entire assignment, nothing will happen since no one here will do your work for you. But if you are specific about what you don't understand about the assignment or exactly what help you need, someone might be able to assist you.

  • accounting -

    I do not know what external pressures have effected the performance of grant clinic and what the actual pressures are.

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