Lec 2 worksheet.pdf

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