Question 12 Consider Super Health Inc., a new for-profit walk-in clinic that needs $200,000 in assets...

Transcribed Image Text:

Question 12 Consider Super Health Inc., a new for-profit walk-in clinic that needs $200,000 in assets to begin operations. 8 Points The business is expected to produce $50,000 in operating income. The clinic has only two capital structure alternatives: 1. No debt financing (all equity); 2. $100,000 of 10% debt (50/50 mix). Assume revenues are projected to be $150,000 and operating costs are forecasted at $100,000. Please fill out this P&L Statement. (Please keep the dollar sign for all the revenue, income and expenses. For Return on equity, please keep two decimal places) Revenues Operating costs Operating income Interest expense Taxable income Taxes (21%) Profit Return on equity Blank 1 Add your answer Blank 2 Add your answer All-Equity Blank 1 Blank 3 50% Debt Blank 2 Blank 4 Blank 5 Blank 6 Blank 7 Blank 8 Blank 9 Blank 10 Blank 11 Blank 12 Blank 13 Blank 14 Blank 15 Blank 16 Question 12 Consider Super Health Inc., a new for-profit walk-in clinic that needs $200,000 in assets to begin operations. 8 Points The business is expected to produce $50,000 in operating income. The clinic has only two capital structure alternatives: 1. No debt financing (all equity); 2. $100,000 of 10% debt (50/50 mix). Assume revenues are projected to be $150,000 and operating costs are forecasted at $100,000. Please fill out this P&L Statement. (Please keep the dollar sign for all the revenue, income and expenses. For Return on equity, please keep two decimal places) Revenues Operating costs Operating income Interest expense Taxable income Taxes (21%) Profit Return on equity Blank 1 Add your answer Blank 2 Add your answer All-Equity Blank 1 Blank 3 50% Debt Blank 2 Blank 4 Blank 5 Blank 6 Blank 7 Blank 8 Blank 9 Blank 10 Blank 11 Blank 12 Blank 13 Blank 14 Blank 15 Blank 16