Supply Chain Management and Financial Plan

FINANCIAL PLAN 5

Financial Plan

Nadia Perrier

Strayer University

Professor Christopher P. Chin

BUS402

May 25, 2019

Financial Plan

Executive Summary

Blisspark health care center will provide health care services in the Southwest regions of the United States. The main services offered by Blisspark are outpatient care, physical and speech therapy among other online health services. In a total budget of 5 million, a new health care center will start its operations and earn a profit of 989469 in year 1 and 1203668 in year 2. Moreover, managing workforce company will pay total salaries and wages as 1208620 in year 1 and 1228620 in year 2. Comment by Christopher Chin: Are these figures? It should read $989, 469. Comment by Christopher Chin: Are these figures? Comment by Christopher Chin: Are these figures? Comment by Christopher Chin: Are these figures?

Financial Budget

Company has set out a budget of 5 million for the establishment of a new health care center in the selected geographical region. Budget will cover all major and miscellaneous expenses related to the new health care center including the purchase of building, equipment, hiring staff, and purchasing the inventory of medicine. According to an estimation, the health care center will generate an additional profit of 4 million on an annual basis. Comment by Christopher Chin: Which Company? Comment by Christopher Chin: Do you mean, The Budget? Comment by Christopher Chin: Where can I find this source?

Hiring and Retaining Plan

The following table presents the hiring and retaining plan for all employees working in the new health care center during year 1 and year 2 (Tulsian, 2002).

Hiring and Retaining Plan
Hiring	Number of Employees	Year 1	Year 2
Managerial staff	3	306120	306120
Medical Staff	15	847500	847500
Cleaning and helping staff	5	5000	5000
Retaining
Incentives and rewards	Given to Employees	50000	70000
		1208620	1228620

Hiring and Retaining Plan Comment by Christopher Chin: This is data, so what is the exact plan?

Projected Income Statement

The following projected income statement shows sales, expenditure, cost of operations, and taxes related information regarding the first 2-year performance (Loughran, 2011).

Income Statement
	Year 1	Year 2
Revenue	4000000	4500000
CGS	800000	900000
Gross Profit	3200000	3600000
Operating Expense
General and Administration Expense	320000	360000
Marketing and Advertisement Expense	100000	100001
Salaries and Wages	1208620	1228620
EBITDA	1571380	1911379
Interest Expense	500	501
Tax Expense [37% according to the US tax system]	581411	707210
Net Profit	989469	1203668

Projected Balance Sheet

The projected Balance sheet includes information about the current asset including inventory, cash, and other assets, fixed assets, and liabilities of the health care center in 2-year performance (SAUNDERS, 2011). The balance sheet shows that health care will keep the optimal level of medicine inventory in order to prevent additional costs of inventory handling and avoiding inventory loss.

	Year 1	Year 2
Assets
Non-Current Assets
Plant + EQUIPMENT	3500000	3500000
Current Assets
Cash	500000	500000
Inventory	30000	50000
Other Current Assets	970000	950000
Total Current Asset	1500000	1500000
Total Assets	5000000	5000000
Liabilities
Current Liabilities	990000	880000
Long term Debt	1010000	1120000
Total Liabilities	2000000	2000000
Equity
Total Equity/ capital	3000000	3000000

* Comment by Christopher Chin: No Conclusion?

References Loughran, M. (2011). Financial Accounting For Dummies. John Wiley & Sons. Retrieved 2019 SAUNDERS. (2011). Financial Institutions management. Tata McGraw-Hill Education. Tulsian, P. C. (2002). Financial Accounting. Pearson Education India. Retrieved 2019