Please help

Review the information presented below in the Sample Operating BudgetDepartment of Physical Therapy and adjust this budget according to the following:

You have just learned that inpatient charges will probably be 3 percent higher than projected and that outpatient charges are expected to increase by 8 percent, and that your research grant support will be reduced by half.

The continuing education conference projected to net $3,200 has been canceled.

Salary expenses will likely be 2 percent higher than originally anticipated.

You are required to show a projected net profit of at least 50 percent of total revenue. If your revised budget generates less than this level of net profit or surplus, indicate where you can probably cut expenses to meet the target and explain why the expenses you have chosen to cut are your best choices.

Note that I am attaching a spreadsheet form that includes the budget, as you might find it easier to do your work.

To respond for this assignment, please:

(1) Submit a spreadsheet demonstrating the changes that you made. Here is a baseline spreadsheet to start with.

(2) In a text box, state what the level of net profit or surplus is after you've made the adjustments and indicate what, if any, expense adjustments you would make to maintain net profit at 50% of total revenue.

Sample Operating BudgetDepartment of Physical Therapy

(July 1, 2013, through June 30, 2014)

I. Revenue and Income

A. Inpatient Charges $550,000

B. Outpatient Charges 310,000

C. Research Grant Support 29,000

D. Continuing Education Conference 3,200

E. Supplies and Equipment Sales 11,500

Total Revenue $903,700

II. Expenses

Direct Expenses

A. Salaries $260,000

B. Consultant 2,500

C. Honorarium 1,500

D. Minor Equipment 6,000

E. Equipment Rental 2,000

F. Travel 2,500

G. Telephone 5,000

H. Supplies 6,000

I. Postage 350

J. Copy Machine Rental 11,000

K. Advertisement 1,500

L. Dues 800

M. Books 350

N. Equipment Maintenance and 2,000 Service Contracts

Total Direct Expenses $301,500

Indirect Expenses

A. Employee Benefits (23%) $59,800

B. Administration 23,000

C. Equipment Depreciation 7,200

D. Physical Plant Operation 39,000

E. Maintenance and Repairs 2,000

F. Building Depreciation 6,000

G. Laundry/Linen 2,500

H. Housekeeping 4,900

Total Indirect Expenses $144,400

Total Expenses $445,900

Net Profit or Loss $457,800

The spread Sheet is here

Budget Worksheet
Revenue and Income
Inpatient Charges		$ 550,000
Outpatient Charges		$ 310,000
Research Grant Support		$ 29,000
Continuing Education Conference		$ 3,200
Supplies and Equipment Sales		$ 11,500
Total Revenue		$ 903,700
Expenses:
Salaries		$ 260,000
Consultant		$ 2,500
Honorarium		$ 1,500
Minor Equipment		$ 6,000
Equipment Rental		$ 2,000
Travel		$ 2,500
Telephone		$ 5,000
Supplies		$ 6,000
Postage		$ 350
Copy Machine Rental		$ 11,000
Advertisement		$ 1,500
Dues		$ 800
Books		$ 350
Equipment Maintenance and Service Contracts		$ 2,000
Total Direct Expenses		$ 301,500
Employee Benefits	23%	$ 59,800
Administration		$ 23,000
Equipment Depreciation		$ 7,200
Physical Plan Operation		$ 39,000
Maintenance and Repairs		$ 2,000
Building Depreciation		$ 6,000
Laundry/Linen		$ 2,500
Housekeeping		$ 4,900
Total Indirect Expenses		$ 144,400
Total Expenses		$ 445,900
Net Profit or Loss		$ 457,800