91%(23)21 out of 23 people found this document helpful
This preview shows page 1 - 3 out of 4 pages.
Running head: OPERATING BUDGET 1Operating BudgetKelsi DammannAshford UniversityHealth Care FinanceHCA 312Instructor Kevin HayesApril 18, 2016
OPERATING BUDGET2Throughout this paper I will discuss my manager’s stance on my proposal to add a retail pharmacy to the hospital. If he is willing to accept my proposal for the capital investment or not, and three arguments that could be used to go with or against my proposal. My proposal will show a 3-Year Retail Pharmacy Profitability Analysis, the Year-1 Monthly Income Statement Detail and the Year-1 Cash Flow Detail and Assumptions. Prior to any decisions being made I would want to see the accounting rate of return. According to Smith, (2014) “The rate of return (percentage) derived from dividing the average net income from a project by the initial investment amount.” The capital for the retail pharmacy will only come from hospital resources. We will not need to take out loans or borrow money. In