Wheatland Health Services
Financial Plan
Forecast
Key Assumptions
The General Assumptions table, below, shows our important (and conservative) annual assumptions concerning interest rates, tax rates, and personnel burden. In addition:
- We assume a strong economy, without major recession.
- We assume, of course, that there are no significant unforeseen changes in the federal policy that dictates Medicare and Medicaid reimbursement of Home Health Care Services.
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
Startup Expenses:
Attorney Fees – Setting Up Limited Liability Company $875
State of Kansas Home Health Agency License $100
Medisoft Billing Program plus Support $5,000
Professional Liability Insurance $3,000 (Assuming 25% down of $12,000.00)
Workman’s Comp Insurance Deposit $500
Premises and Content Insurance Deposit $300 (Assuming 25% down of $1,200.00)
Contract Retainer with PT/OT/ST $500
Office Upgrades (Carpet and Paint) $3,000
Deposit plus First $400
Phone Set Up (Excluding Phones) $250
Utilities Deposit $150
Post Office Box $26
OFFICE EQUIPMENT
2 Computers (Fully Loaded) $3,000
4-in-1 Printer/Fax/Copier/Scanner $750
QuickBooks Pro $300
Phones $200
Pager $50
OFFICE SUPPLIES
Stationary $200
Business Cards $150
Brochures $200
Other Misc. Office Supplies $450
NURSING SUPPLIES $2,500
TOTAL START-UP EXPENSES 21,901
Sources of Funds
$20,000 investment from Elizabeth Patzer and a 5-year $50,000 loan, total of $70,000.
Statements
Projected Profit & Loss`
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Revenue | $451,000 | $465,000 | $504,000 |
| Direct Costs | $148,830 | $153,450 | $166,320 |
| Gross Margin | $302,170 | $311,550 | $337,680 |
| Gross Margin % | 67% | 67% | 67% |
| Operating Expenses | |||
| Salaries & Wages | $185,200 | $190,104 | $195,066 |
| Employee Related Expenses | $37,040 | $38,021 | $39,013 |
| Startup Expenses – Listed in Use of Funds | $21,900 | ||
| Rent | $2,400 | $2,400 | $2,400 |
| Heat and Lights | $1,800 | $1,800 | $1,800 |
| Phone | $3,000 | $3,000 | $3,000 |
| Cell phone | $1,800 | $1,800 | $1,800 |
| Water and Garbage | $600 | $600 | $600 |
| Internet Expense | $300 | $300 | $300 |
| Professional Liability Insurance | $9,000 | $9,000 | $9,000 |
| Workman’s Comp | $600 | $600 | $600 |
| Premises and Content | $600 | $600 | $600 |
| Advertising and Marketing | $1,200 | $1,200 | $1,200 |
| Meals and Entertainment | $600 | $600 | $600 |
| Professional Develolpment | $1,200 | $1,200 | $1,200 |
| Office Equipment and Supplies | $4,800 | $4,800 | $4,800 |
| Contracted Therapists | $19,560 | $19,560 | $19,560 |
| Nursing Supplies | $12,000 | $12,000 | $12,000 |
| Total Operating Expenses | $303,600 | $287,585 | $293,539 |
| Operating Income | ($1,430) | $23,965 | $44,141 |
| Interest Incurred | $3,412 | $3,051 | $2,295 |
| Depreciation and Amortization | |||
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $0 | $0 | $0 |
| Total Expenses | $455,842 | $444,086 | $462,154 |
| Net Profit | ($4,842) | $20,914 | $41,846 |
| Net Profit/Sales | (1%) | 4% | 8% |
Projected Balance Sheet
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Cash | $28,181 | $47,645 | $77,497 |
| Accounts Receivable | $45,450 | $34,875 | $37,800 |
| Inventory | |||
| Other Current Assets | |||
| Total Current Assets | $73,631 | $82,520 | $115,297 |
| Long-Term Assets | |||
| Accumulated Depreciation | |||
| Total Long-Term Assets | |||
| Total Assets | $73,631 | $82,520 | $115,297 |
| Accounts Payable | $16,215 | $13,307 | $14,111 |
| Income Taxes Payable | $0 | $0 | $0 |
| Sales Taxes Payable | $0 | $0 | $0 |
| Short-Term Debt | $9,117 | $9,874 | $10,693 |
| Prepaid Revenue | |||
| Total Current Liabilities | $25,332 | $23,180 | $24,804 |
| Long-Term Debt | $33,141 | $23,268 | $12,575 |
| Long-Term Liabilities | $33,141 | $23,268 | $12,575 |
| Total Liabilities | $58,473 | $46,448 | $37,379 |
| Paid-In Capital | $20,000 | $20,000 | $20,000 |
| Retained Earnings | ($4,842) | $16,072 | |
| Earnings | ($4,842) | $20,914 | $41,846 |
| Total Owner’s Equity | $15,158 | $36,072 | $77,918 |
| Total Liabilities & Equity | $73,631 | $82,520 | $115,297 |
Projected Cash Flow Statement
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | ($4,842) | $20,914 | $41,846 |
| Depreciation & Amortization | |||
| Change in Accounts Receivable | ($45,450) | $10,575 | ($2,925) |
| Change in Inventory | |||
| Change in Accounts Payable | $16,215 | ($2,908) | $804 |
| Change in Income Tax Payable | $0 | $0 | $0 |
| Change in Sales Tax Payable | $0 | $0 | $0 |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | ($34,077) | $28,581 | $39,726 |
| Investing & Financing | |||
| Assets Purchased or Sold | |||
| Net Cash from Investing | |||
| Investments Received | $20,000 | ||
| Dividends & Distributions | |||
| Change in Short-Term Debt | $9,117 | $757 | $819 |
| Change in Long-Term Debt | $33,141 | ($9,874) | ($10,693) |
| Net Cash from Financing | $62,258 | ($9,117) | ($9,874) |
| Cash at Beginning of Period | $0 | $28,181 | $47,645 |
| Net Change in Cash | $28,181 | $19,464 | $29,852 |
| Cash at End of Period | $28,181 | $47,645 | $77,497 |
By 
