Our Services

Get 15% Discount on your First Order

MHA 5001 Columbia Southern University Columbia Needycare Case Study

Instructions

Columbia Needycare is a clinic in south Florida that provides basic medical care for homeless and indigent patients. The clinic is a nonprofit organization that receives revenue from however much patients can pay at the time of their visit. These revenues totaled \$5 million in 2017. The clinic’s expenses, other than its depreciation, totaled 70% of its revenues. The depreciation expenses were \$1 million. Other than depreciation, the clinic pays all of its expenses with cash because all of its revenues are collected in cash. Based on this information, complete the following items for Part I of the case study.

§Develop an income statement for Columbia Needy care for 2017.

§Calculate the total profit margin and net income for the clinic.

§Explain the difference between gross income and net income.

For Part II of this case study, suppose that the clinic has an opportunity to purchase an additional building in another part of the city to help more patients. The new building will cost \$480,000, but it will also need \$35,000 in renovations. Based on this information, answer the following questions:

§Can the clinic afford to purchase and renovate the new facility?

§Do you have enough information to make this decision? If so, how would you recommend that the clinic handle the financing for purchasing and renovating the facility? If no, what additional information would clinic managers need to make this decision?

Expert Solution Preview

Introduction:

In this case study, we are presented with the financial information of a nonprofit clinic, Columbia Needy care, that provides basic medical care for homeless and indigent patients. We are required to develop an income statement for the clinic for 2017, calculate the total profit margin and net income, and explain the difference between gross income and net income. Additionally, we are presented with an opportunity for the clinic to purchase and renovate a new facility, and we are required to determine if the clinic can afford to do so and provide recommendations for financing if necessary.

– To develop the income statement for Columbia Needy care for 2017, we need to calculate the following:

Total Revenues = \$5,000,000

Expenses (excluding Depreciation) = 70% * \$5,000,000 = \$3,500,000

Depreciation Expenses = \$1,000,000

Net Income = Total Revenues – (Expenses + Depreciation Expenses) = \$5,000,000 – (\$3,500,000 + \$1,000,000) = \$500,000

Therefore, the income statement for Columbia Needy care for 2017 is:

Columbia Needy care Income Statement for 2017

Total Revenues: \$5,000,000

Expenses: \$3,500,000

Depreciation Expenses: \$1,000,000

Net Income: \$500,000

– The total profit margin for Columbia Needy care for 2017 is:

Total Profit Margin = Net Income/Total Revenues * 100

= \$500,000/\$5,000,000 * 100

= 10%

The net income for Columbia Needy care for 2017 is \$500,000.

– Gross income refers to the total amount of revenue generated by a business during a specific period, while net income refers to the amount of profit a business makes after deducting all expenses, including taxes and interest, from its gross income. Net income is the amount of money that a business gets to keep after all its expenses have been paid. Gross income is important, but net income is crucial, as it indicates whether a business is profitable or not.

– Based on the information given, the clinic will need \$480,000 + \$35,000 = \$515,000 to purchase and renovate the new facility. As we don’t have information on the clinic’s cash reserves or its ability to obtain financing, we cannot determine if the clinic can afford to purchase and renovate the new facility.

– We do not have enough information to make a recommendation for financing the purchase and renovation of the new facility. The clinic managers would need to determine the cash reserves of the clinic, its ability to obtain financing, and the impact of the purchase and renovation on the clinic’s cash flow and net income. Based on this information, the clinic should consider financing options such as taking out a loan, seeking grants, or partnering with other organizations to cover the costs of the purchase and renovation.

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

ENG 123 SNHU Out of Network Risks for Doctors Persuasive Nursing Assignment Help

ENG 123 SNHU Out of Network Risks for Doctors Persuasive

ohn is a 24-year-old who presents to urgent care with a 2 Nursing Assignment Help

ohn is a 24-year-old who presents to urgent care with a 2

Public Health and You [WLO: 1] [CLO: 5] Like your Nursing Assignment Help

Public Health and You [WLO: 1] [CLO: 5] Like your

questions.

case study analysis Nursing Assignment Help

case study analysis

Health & Medical Question Nursing Assignment Help

Health & Medical Question

Health & Medical Question Nursing Assignment Help

Health & Medical Question

Choose one of the following behavioral interview questions a Nursing Assignment Help

Choose one of the following behavioral interview questions a

During an interview, you will find that responding Nursing Assignment Help

During an interview, you will find that responding

Assignment 1: Understanding the Canadian Healthcare System. Nursing Assignment Help

Assignment 1: Understanding the Canadian Healthcare System.

Assignment 1: Understanding the Canadian Healthcare System. Nursing Assignment Help

Assignment 1: Understanding the Canadian Healthcare System.

Assignment 1: Understanding the Canadian Healthcare System Nursing Assignment Help

Assignment 1: Understanding the Canadian Healthcare System

use references APA format Question 1 Blood Utilizing Nursing Assignment Help

use references APA format Question 1 Blood Utilizing

For this assignment, you will conduct research and write a Nursing Assignment Help

For this assignment, you will conduct research and write a

Picture yourself as a member of the administration team of a Nursing Assignment Help

Picture yourself as a member of the administration team of a

1. Read: Discussion Background As you approach the end of Nursing Assignment Help

1. Read: Discussion Background As you approach the end of

i want you to complete this assignment Please read the Nursing Assignment Help

i want you to complete this assignment Please read the assignment carefully  here is the link of the assignment .. https://www.mediafire.com/file/4ucxvjjxbybplt7/PHA+outline+2024.docx/file https://www.mediafire.com/file/ofo0amjryc5zv63/PHA+questionnaire+2024.doc/file https://www.mediafire.com/file/h2ylykdgzccyb0c/action+plan+2024.doc/file

Trevino, A. J. (2021). Investigating Social Problems. Nursing Assignment Help

Trevino, A. J. (2021). Investigating Social Problems. Available from: VitalSourceBookshelf, (3rd Edition). SAGE Publications, Inc  This is the book Please respond to the following prompt. Grammar and spelling count. Draw upon the textbook and lecture notes in your response. What troubling social condition are you most concerned with (that may