Below is a budget for the physical therapy department. You have just learned that the inpatient charges will probably be 13% less than projected and the outpatient charges will probably increase by 8%. You also learned yesterday that the support for the Research Grant is going to be reduced by half The continuing education conference (another source of revenue) is cancelled this year You need to show a profit of at least 50% of the total revenue of the original budget. In the third column (YOUR NEW BUDGET) make your adjustments in the expense subaccounts. At the end of this table include a summary, your narrative, which explains why you adjusted the subaccounts that you did. REMEMBER there are no other sources of Revenue or Income this year. You can be creative in which subaccounts you adjust Im looking for logical adjustments where you have considered how it impacts the department overall. THERAPY DEPARTMENT July 1, 2018 June 30, 2019.

I. Revenue and Income	Current Budget	Adjusted projection	YOUR NEW BUDGET
A. Inpatient Charges	$550,000
B. Outpatient Charges	310,000
C. Research Grand 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
Indirect Expenses
A. Employee Benefits (23%)	$59,800
B. Administration	23,000
C. Equipment Depreciation	7,200
D. Physical Plant Operations	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

Explanation/Justification for each line adjustment (Dont tell me what you did. I can see that in your numbers. Tell me WHY you made that adjustment):