Lec 2 Worksheet PDF
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Uploaded by SuperiorAntigorite4686
LMU College of Dental Medicine
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Summary
This document discusses financial terms related to dental treatment. It explains concepts like production, collections, and break-even points. The document also describes working capital and other financial metrics.
Full Transcript
PROFIT = Revenue - Expenses Production: term refers to the total dollar amount of dental treatment performed by a provider or practice in a given time frame (day/week/month/year). Collections: payments (cash/credit cards/financing/insurance) made to the practice and deposited in the business bank...
PROFIT = Revenue - Expenses Production: term refers to the total dollar amount of dental treatment performed by a provider or practice in a given time frame (day/week/month/year). Collections: payments (cash/credit cards/financing/insurance) made to the practice and deposited in the business bank account. Collections Ratio: is the calculated percentage of Collections divided by Adjusted Production for a given month or year. Break even point or break even: describes the total cash requirements to pay the bills and keep the doors open. In dentistry, it is the level at which collections (deposits) equal total operating expenses. Salaries: the highest expense in most businesses, especially skilled services. Working Capital: available cash needed for day-to-day operations. A loan for this is not used to purchase long term assets or investments. Doing Business as (DBA): associates a business entity trade name with a legal structure/organization name. EBITDA: related to business valuation, stands for Earnings before Interests, Taxes, Depreciation and Amoritzation