Dr. Allen Case Study

Name

Institutional Affiliation

Course

Date

Executive Summary

Because some clinics do not offer door-to-door services, Dr. Allen Ronald's mission was to deliver veterinary care to as many people as possible. Dr. Allen Ronald discovered that some persons or residents living within his catchment area had difficulties transporting their pets to veterinary clinics for various services. Some were senior citizens who had trouble moving around. The solution to the problem statement required Dr. Allen to launch a sole proprietorship through which he would provide door-to-door services. He would target customers with trouble transporting their pets to veterinary clinics and customers who were so elderly that they could hardly walk or drive to the clinic. As a result, rather than having patients come to his clinic, Dr. Allen began conducting house calls on some of his patients. His vehicle was a makeshift medical clinic with all the necessary medications to treat various conditions. Even though he followed people into their homes, Dr. Allen continued to bill them for the expenses he expended and the medicines he administered to their pets. The price charged for transportation changed depending on the total distance driven.

Introduction

The primary purpose of the case study is to highlight the significance of the idea that constitutes the "Basic Accounting Equation," which is often referred to as the equation for the balance sheet. The case study requires careful inspection and the identification of the various components of an accounting equation, which serves as the basis for a double-entry accounting system. In this system, every monetary transaction is recorded in the company's books in two different locations: a debit and a credit. The use of double-entry accounting incorporates several essential types of checks. It guarantees that the correct amounts of debits and credits are recorded. It is also helpful since it provides a detailed expression of the assets and liabilities of your business, whether for traders or shareholders. Accounting equations are an essential tool that investors and lenders use to evaluate a company's current financial status. Company funding is dependent on these equations. It is a sign that you must manage your company better if your obligations exceed your assets. This is significant because every transaction impacts the financial condition of the company that the organization engages in. We can determine the investments that Dr. Allen has made in the company, as well as his assets and liabilities, with the help of this case study. Determine and categorize the accounts impacted by particular transactions, such as the receipt of a cash payment for services rendered and accounts impacted if Dr. Allen pays for brand-new veterinary equipment.

Analysis of Results and Discussions

Given that Dr. Allen is a sole trader, the easiest way to approach the case study is to analyze his veterinary clinic by breaking it down into the Assets, liabilities, and Owners' Equity components of a basic accounting equation. This will be the most effective way to tackle the case study. Investigating his daily business dealings in great detail will reveal how successful his company will be. When clients cannot bring their animals to clinics, Dr. Allen travels to their homes to provide veterinary care for their pets. His practice is a mobile one. The financial security of his company is jeopardized as a direct result of this one action. He gives senior citizens price reductions as an additional gesture of his compassion for them. Dr. Allen Ronald is the sole proprietor of his medical practice, which he manages entirely independently. Despite attending an expensive school, he has a poor education and has invested much money in a company that has not been successful.

Nonetheless, his success can be attributed to the prudent utilization of the resources at his disposal. In the case study, the Assets, Liabilities, and Owners' Equity fundamental account equation is presented in a manner that is easy to understand. Because he performed as a one-person show all by himself. According to numerous research findings, investing involves setting money aside to generate a return later.

James (2020) states that investments are "assets or items gained to create income or appreciation." Appreciation refers to a development in value over time. Dr. Allen has invested significant money, time, and other resources into this business venture. These resources include his vehicle for business travel, a call-in facility, his willingness to assist senior citizens in reducing their spending, the laboratory, the equipment, the pharmaceuticals, the stock, the cash, and experience. Together, these constitute Dr. Allen's business assets.

The Basic Accounting Equation represents the company's financial health, and it details the company's assets, liabilities, and owner's equity to establish the company's overall health. If the company's obligations exceed its assets, it must be in a better financial position. The optimal scenario is when obligations are equal to assets plus owner equity. The Fundamental Financial equation Dr. Allen uses in his case studies demonstrates how his transactions affect the company's finances. The significant assets of his company include the van he uses for transportation, the mobile laboratory that is contained within the vein, the veterinary equipment, the medical supplies or stock, the call-in facility, the actual traveling and the time spent on the trip, his expertise, as well as the cash that is both on hand and in the bank.