Question

As the Manager of the Greenpoint location of the Metropolitan Clinic, you have been assigned to...

As the Manager of the Greenpoint location of the Metropolitan Clinic, you have been assigned to complete the 2017 operating expense budget. This clinic provides primary care to patients of all ages. It has contracts in place with all of the major payers as well as all of the Medicaid Managed Care providers currently licensed in NY State.

In preparing your budget for next year you have been given several assumptions, as follows:

  • Salaries, benefits and taxes will increase by 4.2% with no adjustment for volume changes.
  • Budgeted amounts for rent and physician services are fixed by contract and in 2017 will equal 2016 levels.
  • The cost of Drugs is expected to increase by 8.9%
  • All other items are expected to increase by 5%.
  • No more money is available in 2016 to spend on office equipment, but an additional $5,000 in medical equipment will be spent in the remainder of 2016.  The medical and office equipment budgets for 2017 will equal the 2016 projected actual.

The data you have been provided for the current year, 2016, is actual expense thru August.

Your assignment is to complete the excel sheet found in this Homework file, and upload it using the ATTACHMENTS button in the Dropbox. In completing this sheet, you must project 2016 final actual expenses and then project the budget amounts for 2017. If you choose to insert numbers into the various cells, and not use formulas to do your calculations, your grade on this assignment will be lowered by 15 points

8 Month Actual Projected 2016 Budget 2017
Salaries $400,000.00
Federal and NY Tax $64,000.00
Benefits $56,000.00
Sub-Total Salaries and Benefits $520,000.00
Rent $65,000.00
Electric $6,000.00
Natural Gas $3,900.00
Patient Supplies $10,000.00
Drugs $12,500.00
Sutures and Casts $5,003.00
Pt. Medical Equip. $675.00
Pt. Food $2,596.00
Physician Services $250,000.00
Miscellaneous $7,623.00
Sub-Total Other Operating Items $363,297.00
Office Equipment $4,567.00
Medical Equipment $12,500.00
Sub-Total Equipment $17,067.00
TOTAL $900,364.00

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A new physician clinic is opening and the following monthly assumptions were made: The expense budget...
A new physician clinic is opening and the following monthly assumptions were made: The expense budget was constructed assuming that staff salaries and associated fringe benefits, supplies and freight were variable costs - costs that increase with each patient served. Total variable costs are $425.000 or $529.27 of cost per patient assuming that 803 patients are seen each month in this new clinic. The total monthly cost is $530,000. The fixed cost is determined by subtracting the total variable cost...
If you have been approached to design an office for a medical clinic. Clarify in detail...
If you have been approached to design an office for a medical clinic. Clarify in detail your initial step? (Facilities Planning) new answer Plz
Dynatech Healthcare, a group practice clinic with 10 physicians, had the following income in 2017: Revenue...
Dynatech Healthcare, a group practice clinic with 10 physicians, had the following income in 2017: Revenue $3,300,000 Less operating expenses: Salaries Physicians $1,360,000 Nurses 146,000 Nursing aide 63,500 Receptionist 54,000 Accounting services 40,000 Training 125,000 Supplies 259,000 Phone and fax 3,700 Insurance 301,000 Depreciation 242,000 Utilities 20,400 Miscellaneous 72,000 Total operating expenses 2,686,600 Income before taxes 613,400 Less taxes on income 214,690 Net income $398,710 The following changes are expected in 2018: 1. The clinic is expecting a 2 percent...
You have just been contracted as a budget consultant by LBJ Company, a distributor of bracelets...
You have just been contracted as a budget consultant by LBJ Company, a distributor of bracelets to various retail outlets across the country. The company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. You have decided to prepare a cash budget for the upcoming fourth quarter in order to show management the benefits that can be gained from proper cash planning. You have worked with accounting...
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of...
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare comprehensive budgets for the upcoming second quarter in order to show management the...
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of...
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have...
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of...
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have...
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of...
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have...
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of...
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have...
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of...
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT