Chimilio Clinic uses client-visits as its measure of activity. During June, the clinic budgeted for 3,400 client-visits, but its actual level of activity was 3,360 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for June:
Data used in budgeting:
Actual results for June:
-The net operating income in the flexible budget for June would be closest to:
Definitions:
Financial Leverage
The use of borrowed funds to enhance the potential return of an investment.
Total Liabilities
The sum of all financial obligations or debts that a company owes to outside parties at a given point in time.
Total Assets
The sum of all assets owned by a company, including current, fixed, tangible, and intangible assets, represented on the balance sheet.
Total Equity
Total equity represents the value left for shareholders after all liabilities have been subtracted from the total assets of a company.
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