Business of Radiology 101

Income Statement: Cost of Sales

The cost of sales or cost of goods sold is the expense incurred directly from the production of a product or service. In radiology, this would include items such as contrast, gloves, needles, tubing etc. Net Revenue - Cost of Sales = Gross Profit

*  all values represent 1,000s of dollars.
			Year 0	Year 1	Year 2	Year 3	Year 4	Year 5
Net Revenues	Δ
Cost of Sales
Operating Expenses	Δ
Operating Profit (EBIDAT)
Interest Expense
Earnings before Deprec, Amort & Tax (EBDAT)
Depreciation Expense
Tax
Net Income
Cash Flow (cumulative)
Cash Flow (annual)
Net Present Value of Cash Flow	discount rate
Return on Investment
Acquisition Cost			Price	Renovation	IT / PACS	Sales Tax	TOTAL
		$
Scanner Useful Life (yr)
Scanner Residual Value (% of new price)
Financing (Loan) Details			Money Down	Principal	Rate	Term (yr)
	Down Payment
Interest Payment (annual, not monthly)				Year 1	Year 2	Year 3	Year 4	Year 5