Financial and Managerial Accounting
Dr. Paula Loniak of Athens, Georgia, has worked with animals for more than 25 years. She has been a racehorse groom, a boarding kennelmanager, a veterinary technician, and a veterinarian.
Dr. Loniak started a sole proprietorship called Vet-to-Pet, a house call practice for dogs and cats. Dr. Loniak visits pets in their homes toprovide veterinary services. She treats illnesses such as skin problems, allergies, ear and eye irritations and minor wounds. Vaccinations and lab screening tests are also administered.Dr. Loniak considers her services are intended for those who have a hard time getting their pets to a clinic.
Dr. Loniak works independently and uses a van to make her house calls. She charges an initial fee, whichcovers her expenses traveling to the patient’s home. This fee varies depending on the distance Dr. Loniak must travel. She also charges for the exam and any treatment, lab work, or medication required.She always carry inventory of refrigerated drugs and supplies. She offers a sliding scale (lower, variable fees) for senior citizens on fixed incomes. She serves individuals with mobility limitationsand works with seeing-eye and assistant/working dogs.
1. What is the best business structure for Dr.Loniak Why?
The best business structure is the Sole Proprietor because, is the most easy formand is common used when all the functions are in changer of the only one person. In this case, the owner is a personally liable for all financial obligations and debts. The Sole Proprietors can befull time or part time and includes operating a:
* Shop or retail trade business
* Large company with employees
* Home based business ( Dr. Loniak)
* One person consulting firm
2.What are the assets for this business?
The assets are:
Current assets: Cash and cash equivalents (currency, deposit accounts or negotiable instruments). Inventory (drugs and supplies)