Chat with us, powered by LiveChat Conduct a financial analysis using the three scenarios provided in the Excel Assignment Workbook. These are not based on your project but will help you learn the process. Complete th - Wridemy Bestessaypapers

## 15 Oct Conduct a financial analysis using the three scenarios provided in the Excel Assignment Workbook. These are not based on your project but will help you learn the process. Complete th

Conduct a financial analysis using the three scenarios provided in the Excel Assignment Workbook. These are not based on your project but will help you learn the process.

Complete the following:

Ratio Analyses Worksheets:

Open your Excel Assignment Workbook. This assignment will be completed on 3 separate tabs named:

1. W8A5a Expense Forecasting
2. W8A5b Breakeven Analysis
3. W8A5c Marginal Profit and Loss

Using the Healthcare Budget Request Guide for guidance, complete the three scenarios: expense forecasting, break-even, marginal profit and loss for the scenarios provided.

## W2A2 Practice Design

 W2A2 Practice Design Refer to the Healthcare Budget Guide for an example of what to include and how it should look.

## W4A3 Estimated Expenses

 W4A3 Estimated Expenses Refer to the Healthcare Budget Guide for an example of what to include and how it should look.

## W6A4 Budget Development

 W6A4 Budget Development Bring forward your work from W4A3 and add ratios as directed in the Healthcare Budget Guide

## W8A5a Expense forecasting

 W8A5 Estimated Expenses Refer to the Healthcare Budget Guide for directions on completing this Expense Forecasting scenario Expense Forecasting Based on the information provided, prepare an expense forecast for 20X1 using the template below: Spending during January- June 20X1 (6 months) ·      Fixed expense items: \$210,000 ·      Variable expense items: \$1,200,000 ·      One time expense: \$50,000 of fixed expense money was spent on preparing for a Joint Commission survey Procedures preformed during January- June 20X1 (6 months) ·      Your department has performed 20,000 procedures during the first six months On November 1,20X1, two new procedure technicians will begin work. The salary and fringe benefit costs for each is: \$ 96,000.00 yearly Description Fixed Variable TOTAL Year to Date Expense Adjustments Add back "One Time" credits Deduct "one Time" expenses Adjusted total for year to date expense Annualization Divide by months (fixed) 6 Multiple by months (fixed) 12 Divide by volume 20,000 Multiply by volume 40,000 Annualized Amounts Adjustments Add back "One Time" expenses Deduct "One Time" credits Expense two new technicians Expense Forecast as of 12/31/X1

## W8A5b Breakeven Analysis

 W8A5 Breakeven Analysis Refer to the Healthcare Budget Guide for directions on completing this Breakeven Analysis Break-Even Analysis Scenario You can charge \$1,075 for a new service. Demand is anticipated to be 8,000 units a year. Your business is able to handle up to 16,500 units annually, so capacity should not be a problem. The average collection rate is 80%. The new service has annual fixed costs of \$4,700,000. Variable cost per unit of service is \$420. Price to be Charged Collection Rate Average Collection per Service Variable cost per unit of service Fixed Operating Costs Break-Even Point =Fixed Cost/(Net Revenue per Unit-Variable Cost per Unit) Capacity: Demand: Breakeven: Question: Use break-even analysis to determine if this new service is financially viable. If the business is not financially viable, what steps could you take to make a case to proceed with implementation? Explain your decision.

## W8A5c Marginal Profit and Loss

 W8A5 Marginal Profit and Loss Refer to the Healthcare Budget Guide for directions on completing this Marginal Profit and Loss scenario Marginal Profit and Loss Statement Scenario You are examining a proposal for a new business opportunity – a new procedure for which demand is expected to be 1,400 units the first year, growing by 600 units each year thereafter. The price charged per procedure is \$1,000. The collection rate is anticipated to be 80%. Each procedure consumes \$300 of supplies. Salary cost is estimated to cost \$540,000 each year, fringe benefits are 25% of salaries, rent for the facility is \$55,000/yr and operating cost are \$120,000/yr. Year One Year Two Year Three Year Four Year Five Marginal Revenue: Units of Volume Price Procedure Collection Rate Marginal Net Revenue Marginal Costs: Variable Costs Units of Volume Variable Cost Supplies per Unit/procedure Marginal Variable Cost Fixed Costs: Salary Costs Fringe Benefits Rent Operating Cost Marginal Fixed Costs Total Marginal Costs Annual Marginal Profit Cumulative Profit Margin Question: Below is a marginal P&L for this business opportunity. Based on that analysis, should this opportunity be pursued. Explain your decision. Answer:

## W10-11A6 HealthWays Financials

Option 1 Healthways Finacials * The cells where you complete these calculations are highlighted in blue.
You have 2 data options for completing the Week10/11A6 analysis. If you cannot obtain the finacial documents for your organization (your project) use this Healthways Financials option.
Nurse-Run Clinic Scenario
Patient Encounters FY 2018 FY 2017
Established patients 3,348 3,204
New patients 331 287
Total Encounters 3,679 3,491
Cash \$5,675 \$12,098
Financial Ratios:
Expense per Encounter = Total Operating Expenses / Total Encounters
Total Operating Revenue per Encounter = Total Operating Revenue / Total Encounters
Operating Margin = Net Income/Total Operating Revenue
Days Cash On Hand = (Cash + Cash Equivalents) / (Operating Expenses / Days in Time Period)
Table 2. HealthWays Clinic, Income Statement, FY 2018. Table 3. HealthWays Clinic, Balance Sheet, December 31, 2018.
FY 2018 FY 2017 Horizontal Analysis Current Assets December 31, 2018 December 31, 2017 Current Liabilities December 31, 2018 December 31, 2017
Gross Revenue (charges) \$558,520 \$497,221 Cash 5,032 9,877 Notes Payable 27,449 50,000
Less write-offs & adjustments 117,254 104,332 Short-term Investments 40,389 34,181 Accounts Payable 78,702 69,412
Net Patient Revenue (collected) \$441,266 \$392,889 Accounts Receivable 63,392 59,359 Accrued Expenses:
+Other Revenue 209,671 234,953 Supply Inventories, at Cost 16,029 14,918 Salaries & Benefits 38,265 28,274
Prepaid Expenses & Other 2,104 1,876 Taxes 1,419 1,398
Total Operating Revenue \$ 650,937 \$ 627,842 Total Current Assets \$ 126,946 \$ 120,211 Interest Payable 3,294 500
Total Current Liabilities \$ 149,129 \$ 149,584
Operating Expenses
Salaries & Benefits 459,171 445,396 Property, Plant & Equipment (Fixed Assets) Long-Term Liabilities \$0 \$0
Medical Supplies 97,627 92,418 Cost of PP&E 56,047 55,701
Office Supplies 7,471 7,302 Less Accumulated Depreciation 4,194 3,943 Net Assets
Rent & Depreciation 39,148 37,023 Net PP&E (Net Fixed Assets) \$ 51,853 \$ 51,758 Unrestricted 28,541 20,569
Other 43,762 47,009 Other Assets \$ 1,289 1289 Restricted 2,418 3,105
Percentage change
Total Operating Expenses \$ 647,179 \$ 629,148 Total Assets \$ 180,088 \$ 173,258 Total Net Assets \$ 30,959 \$ 23,674
Net Income \$ 3,758 (\$1,307) Total Liabilities &amp