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final exam

The license fee for the facility proposed is $200 plus $50 for each bed up to a maximum of $1,500 upon application for one year and $100 plus $50 for each bed for renewal each year to a maximum of $750 (Texas Department of Aging and Disability Services (n.d.). Therefore, a total of $1,500 would be paid in the first year and $750 each year thereafter until an adjustment is made. The revenue per unit/person is in keeping with rates obtained from Genworth Cost of Care Survey for 2013 which suggest that the minimum, median, and maximum monthly rates are $933, $3,710 and $8,445 respectively for a one bedroom single occupancy assisted living facility in California (Genworth 2013). The information in Table 1 in the Appendix indicates that these rates would result in minimum, median and maximum income per person per annum of $$11,196, $44520 and $101,340 respectively. Table 1 also indicates that 53 single occupancy units would be available for assisted living over the ten year period. If all units were occupied during the year the total annual revenue from this would be $593,388 at its lowest, $2,359,560 at the median level and $5,371,020 – the maximum per annum. An occupancy level of 93% is assumed for year 2 to year 10 for assisted living. ...Show more

Summary

Assessment of Budget for Assisted Living Facility Name Institution Date Introduction In making the decision to invest it is very important that a budget as well as a cash flow projection be prepared to determine whether the business will be profitable as well as to determine when additional cash inflows may be required…
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