Using the sample budget below for the health information management service, adjust the budget to reflect the changes. Indicate the line item and the amount of the change, and make any note about the change (like why it was eliminated or decreased). The deliverable will be a NEW copy of the budget with your changes and the justifications written in along the same budget line.

As a result of decreased business revenues, your job is to decrease the budget below by 10%. You can cut direct or indirect expenses. What are the things things would you cut and why? Show the new numbers and totals. Cut at least 3 different categories. The math is not overly important for the totals, no points will be deducted for math issues.

SAMPLE OPERATING BUDGETDEPARTMENT OF PHYSICAL THERAPY

(July 1, 20n1, through June 30, 20n2)

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 Service Contracts 2,000

Total Direct Expenses $301,500

III. 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