1. It is January 2, 2012 and you have started your first day of work as the Practice Administrator for the Tri-Cities Geriatric Center (a physician practice serving older adults). Your first job is to project a budget for calendar year 2012. In gathering information for this task, you come across budgets for the past 3 years. However, the former Director did not complete budget worksheets (maybe the reason he was fired), so you dont have complete information.

a. Complete the CY 2009, 2010, and 2011 budgets (Table 1a)

	Table 1a
	Tri-Cities Geriatric Center
	Historical Financial Data
	CY 2009	CY2010	CY2011
Number of visits	12,000	12,120	12,241
Private insurance visits	9,600	9,696	9,793
TennCare visits	2,400	2,424	2,448
Net Revenue	$552,000	$557,520	$563,090
Private revenue	$480,000	$484,800	$489,650
TennCare revenue	$72,000	$72,720	$73,440
Expenses
Salaries and wages	$134,933	$136,283	$137,644
Physician fees	$179,512	$181,307	$183,119
Malpractice insurance	$32,013	$32,333	$32,656
Travel and education	$4,488	$4,533	$4,578
General insurance	$8,377	$8,461	$8,546
Utilities	$12,267	$12,389	$12,513
Equipment and lease	$1,496	$1,511	$1,526
Other operating expenses	$89,756	$90,654	$91,559
Total Operating Expenses	$462,842	$467,471	$472,141
Net profit (loss)	$89,158	$90,049	$90,949

b. Construct a P&L statement for CY 2012, explaining why you projected EACH number.