One year ago, Metropolitan Memorial expanded its operations into a rural community located approximated a hundred miles from its main facility. The clinic offers a wide array of outpatient services. As the Senior Accountant, you are reviewing the clinic'soperating budget from the previous year. You have been asked by the hospital's chief administrator to create a new six-month operations budget for the clinic.

Using an Excel spreadsheet, create a new six-month budget for the clinic that includes the following revenue and expense projections:

• The clinic's revenue is projected to grow by approximately 3% as a result of a new managed care contract.
• The cost of expenses is expected to increase to 1.5%.
• The clinic will also be adding a new roof to the facility at a projected cost of $50,000.

Then prepare a memo for the chief administrator. The memo should include a review of the previous year's budget, an analysis of the upcoming changes (figures above), and a discussion about the impacts that these changes will have on the budget for the upcoming year

REVENUES Description Clinic Revenue Lab Revenue Medications Revenue Procedures Revenue Less Contractuals TOTAL CLINIC REVENUE EXPENSES Description PAYROLL Provider salary Receptionist salary LPM salary Total Salary & Wages: Provider FICA Receptionist FICA LPN FICA Total FICA Unemployment Health Insurance Life Insurance Long Term Disability 401K Employer Contribution Total Additional Benefits: TOTAL PAYROLL: OPERATING EXPENSES Supplies Food Misc. Supplies Medications Medical Supplies Office Supplies Printing Postage Professional Fees Consulting Audit Fee Legal Feas Detail 325 clients per month, 3,900 total visits Yearly Budgeted Amount 163,800.00 195 of billable labs per month, 2340 labs per yea58,500.00 162 meds per month, 1,950 per year = of billable procedures done per year Percentage negotiated with payer Detail Total salary Salary x 0.0765 Salary x 0.0765 Salary x 0.0765 UPS, Fed Ex, Postage Accountants fees 39,000.00 26.000.00 114,920.00 402,220.00 Yearly Budgeted Amount 60,000.00 13,395.00 28,182.00 101,577.00 4.530.00 1,024.68 215592 7,770.60 10,222.08 2.216.00 666.00 13,104.08 122,451.68 100 1,000.00 5,000.00 4,500.00 500.00 500.00 500.00 1,000.00 1,500.00 1,500.00