Healthcare Finance 0

5.5 You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows:


Revenues:                                $400,000

Wages & Benefits:                     $220,000

Rent:                                        $5,000

Depreciation:                             $30,000

Utilities:                                     $2,500

Medical Supplies:                      $50,000

Administrative Supplies:             $10,000


Assume that all costs are fixed, except supply costs, which are variable. Furthermore, assume that the clinic must pay taxes at a 20 percent rate.

    1. Construct the clinic’s projected P&L statement.
    1. What number of visits is required to break even?
    1. What number of visits is required to provide you with an after-tax profit of $100,000?





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