5.5 You are considering starting a walk-in clinic. Your financialprojections for the first year of operations are as follows:Revenues (10,000 visits)Wages and benefitsRentDepreciationUtilitiesMedical suppliesAdministrative supplies$400,000220,0005,00030,0002,50050,00010,000Assume that all costs are fixed, except supply costs, which are vari-able. Furthermore, assume that the clinic must pay taxes at a 30 per-cent rate.a. Construct the clinic's projected P&L statement.b. What number of visits is required to break even?c. What number of visits is required to provide you with an after-taxprofit of $100,000?

Income statement:The income statement is the final account of the company which takes the balance of…

Answered: Assume that all costs are fixed, except…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A car rental agency rents 200 cars per day at a rate of $30 per day. For each $1 reduction, 10 more cars are rented. At what rate should the cars be rented to produce the maximum revenue? What is the maximum revenue?
Based on what was reviewed in class, please submit a BOE analysis for the multi tenant retail center based on the information below. Please determine the Net Operating Income of this property. Also, what price would you pay for this property, if you wanted to achieve a 5% Cap Rate (Capitalization Rate)? NOTE: Common Area Maintenance (CAM) paid by tenants are $0.67 Per Square Foot, Per Month. Assume 5% Vacancy Rate. BOE Analysis - Assignment.png
You run a nail salon. Fixed monthly cost is $5,102.00 for rent and utilities, $5,992.00 is spent in salaries and $1,613.00 in insurance. Also every customer requires approximately $3.00 in supplies. You charge $90.00 on average for each service. You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $11,786.00, salaries to $6,735.00 and insurance to $2,228.00 per month. Cost of supplies will increase to $7.00 per service. However you can now charge $167.00 per service. What is the PROFIT or Loss at the crossover point? If a loss include the - Round the quantity to 3 digits when using to calculate the profit Submit Answer format: Number: Round to: 2 decimal places.
Course: Financial MathematicsIn a certain city, a landlord used to pay one-eighth (12.5%) of profit he made on his rents. Then tax was increased and he now pays 20% of what he makes as profit from his rents. By what percentage (%) must his rent increase to continue to have the SAME RENT as before tax increase? Answer is 9.375% Procedure are needed to get 9.375% as answer.
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Please help me with c. Thanks!
A firm is trying to choose between two machines to manufacture a new line of office furniture. The financial data for each machine have been compiled as follows: The firm's marginal tax rate is 40% and uses a 15% discount rate to value the projects. Also, assume that the required service period is indefinite. What is the internal rate of return (after tax) of machine A?(a) 28%(b)39%(c) 35%(d)43%
You are currently a worker earning $60,000 per year but are considering becoming an entrepreneur. You will not switch unless you earn an accounting profit that is on average at least as great as your current salary. You look into opening a small grocery store. Suppose that the store has annual costs of $150,000 for labor, $50,000 for rent, and $30,000 for equipment. There is a one-half probability that revenues will be $210,000 and a one-half probability that revenues will be $400,000. Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (−) in front of those numbers. Enter a loss as a negative number. a. In the low-revenue situation, what will your accounting profit or loss be? $ What will your accounting profit or loss be in the high-revenue situation? $ b. On average, how much do you expect your revenue to be? $ Your accounting profit? $ Your economic profit? $…
g. Living Expenses: Assume reasonable values for your living expenses. (You may adjust these numbers to fit your estimated costs, but a good starting point for monthly costs are Utilities: $150, TV: $40, Internet: $30, Cell Phone: $40, Phone: $40) You should also include estimates for food, gas, entertainment, and any other expense you can think of. What is your monthly payment for all of your living expenses?
If your buying a car from a car dealership for $80,000 & the car dealership is giving you $19,000 for the trade, $495 Pre-Delivery fee, Tax Title License comes out to around $4,322.19, and payoff of $18,500 you would come to a out the door (financed) $83,974. Can you explain how he got those numbers in detail? And how much is Tax, Title, and License? If Sales Tax: 6.25%

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