Spreadsheet Help

I have a spreadsheet assignment that I need completed in a short amount of time. It involves simple Accounting. I did most of the legwork but I need someone to double check my work and verify that it is correct. Also I need this person to assist me with the second half of the assignment. Attached is the spreadsheet and instructions. I appreciate the help.

Baseline

/Expense Statement

Income

$0 $192,000

$255,000 $255,000 $255,000

3.00%

3.00%

$54,000

$82,000 $82,000 $82,000 $82,000

$450,000

$0

$73,113 $73,113

$33,000 $33,000

$55,000

$40,000

4.50%

4.50%

4.50%

4.50%

																																																																																																												Attachment One:		Income		Computer Lab Assignment No. 1
	Shah Ophtalmology Center
	Name:
	Actual		Projected
	Values		% Increment		2012		2013		2014		2015
	Office Visits										4.50%		$600,500	$627,523	$655,762	$685,271
	General Surgery		6.00%		$482,500	$511,450	$542,137	$574,665
	Refractive Surgery			$192,000		22.00%			$0
	Total Income
	Expenses
	Salaries
	Dr Casey		10.50%		$140,000	$154,700	$170,944	$188,893
	Dr. Shah					$255,000
	Office Manager						3.00%		$65,000	$66,950	$68,959	$71,028
	Receptionist				$40,000	$41,200	$42,436	$43,709
	Medical Technician – 1		$50,000	$51,500	$53,045	$54,636
	Medical Technician – 2			$54,000		3.50%	$55,890	$57,846	$59,871
	Contract Services		0.45%
	Refractice Surgery equipment lease						$82,000
	Equipment Depreciation			$450,000	$360,000	$270,000	$180,000
	Interest Expense		$390,000		3.95%			$73,113
	Insurance				$33,000		$55,000
	Office rent		5.50%	$42,200	$44,521	$46,970
	Material & Supplies		$22,000	$22,990	$24,025	$25,106
	Telephone & Communications		$27,700	$28,947	$30,250	$31,611
	Marketing		$15,000	$15,675	$16,380	$17,117
	Miscellaneous Expenses		$16,600	$17,347	$18,128	$18,944
	Total Expenses
	Gross Profit (Total Income – Total Expenses)
	Income Taxes		21.00%
	Net Income
Note: Income/expense statement w/ surgery in next sheet.

MBAD 252 Page &P &D

With_Surgery

Computer Lab Assignment No. 1
Shah Ophtalmology Center
Name:
Actual Projected
Values % Increment 2012 2013 2014 2015
Income

Office Visits 4.50% $600,500
General Surgery 6.00% $482,500
Refractive Surgery $192,000 22.00%

Total Income
Expenses
Salaries

Dr Casey 10.50% $140,000
Dr. Shah $255,000
Office Manager 3.00% $65,000
Receptionist 3.00% $40,000
Medical Technician – 1 3.00% $50,000
Medical Technician – 2 $54,000 3.50%

Contract Services 0.45%

Refractice Surgery equipment lease $82,000
Equipment Depreciation $450,000
Interest Expense $390,000 3.95%
Insurance $33,000
Office rent 5.50% $40,000
Material & Supplies 4.50% $22,000
Telephone & Communications 4.50% $27,700
Marketing 4.50% $15,000
Miscellaneous Expenses 4.50% $16,600

Total Expenses

Gross Profit (Total Income – Total Expenses)
Income Taxes 21.00%

Net Income

Attachment One: Income/Expense Statement

MBAD 252 Page &P &D

Shah Ophthalmology Cente
r 1/27/2013

Background

Lee Shah, a board certified ophthalmologist, has been successful in private practice for 15 years. In 2012 he met Ann Casey, a newly minted ophthalmologist, and agreed to employ her in his practice. (See contract terms below.) As a result Dr. Shah reorganized his practice as a new limited liability corporation, beginning with 2012.

Attachment One (excel Spreadsheet) is the Income/Expense statement for the first year of the newly organized medical practice. Dr. Shah now wants to replace some of the aging medical equipments in the facility and add examining room equipments to accommodate Dr. Casey. These purchases will cost $450,000. He will have to borrow $390,000 to enact this renovation and wants to create a series of pro forma income/expense statements for the next three years to accompany his loan application.

Assumptions and Added Information

1) Dr. Ann Casey’s four-year contract provides for a starting salary of $140,000 for 2012 and a 10.50% increase for each of the next 3 years, after which a new partnership arrangement may be established depending upon results of the previous 4 years.

2) Dr. Lee Shah draws a salary of $255,000 plus retains the resulting annual profits (net income after taxes).

3) As a result of employing Dr. Casey the practice is expected to grow during the next three years as follows:

– Office visits 4.50% per year

– General surgery 6.0% per year

4) A local bank has informally offered a $390,000 loan for a six year period at 3.95% annual interest.

5) The practice employs an Office Manager, a Receptionist and a Medical Technician; all can expect a 3.00% salary increase each year for the next three years.

6) The practice employs a contract service to perform all its billings, bookkeeping

and accounts payable needs. The contract service charges the practice at the rate

of 3.8% of gross income and requires a 0.45% annual increase beginning in 2013.

7) Insurance for the Center is $33,000/year. With added surgical procedures

beginning in 2014, the annual insurance expense will be $55,000/year.

8) The lease for the office space, $40,000/year, includes a 5.5% increase in rent per year. And all other office expenses (materials & supplies, telephone & communications, marketing, and miscellaneous) are expected to increase 4.50% each year.

9) The new equipments have a five-year life and are depreciated on a straight-line basis.

10) Taxes on the corporation are 0% for the first $33,000 of profit and 21.00% for the balance of profits.

Assignment

1) Using the attached income/expense statement outline and the 2012 operating data

as the base period, you are asked to calculate the following for the years 2013 –

2015:

– Total incomes for each year

– Total expenses for each year

– Gross profit for each year

– Taxes for each year

– Net Income for each year

(Assume the loan is received and the equipments are purchased at the beginning

of 2013.)

Begin by completing the income/expense statement for the year 2012.

2) Dr. Shah has recently previewed the most recent refractive surgery equipments, which he is certified to use. Beginning in 2014 the Practice will lease these equipments and offer refractive surgery. Revenue from refractive surgery is expected to be $192,000 in 2014 and then increases 22% per year.

The equipments lease for $82,000 per year which includes all maintenance and supplies.

An additional Medical Technician will be needed in 2014 for this effort, with a starting salary of $54,000 (and with a 3.5% annual raise planned), and marketing expenses will increase by 15% beginning in 2014.

Assignment Deliverables

a) Upload the file to Blackboard.
In order to distinguish between the work of different students, the following guidelines should be adhered to:

i. Name the .xls or .xlsx (Excel) workbook: Excel_LastName_FirstName

Hints:

a. Rounding numbers to whole integers will make the spreadsheets easier to read

b. You should use formulas for the projections
NOT
hard numbers, so Dr. Shah can easily manipulate the spreadsheet in playing “what if” exercises on business expectations