Budget Preparation: You are the practice manager for a small clinic. In $2023,$ yourclinic had $2500$ visits, resulting in $$625,000$ in gross revenue. There was $5\%$ baddebt encountered. You spent $$325,000$ on base salaries, with an additional $26\%$spent on healthcare benefits for staff. You had the following expenses:Rent $$12,000$Utilities $$1700$Coding books $$200$ total for $2$ codersAdditional contract coding cost $$55,000$Postage $$145$Office supplies $$1250$Display the above $2023$ information in Excel format, showing whether your clinicmade a profit or loss and how much that was. In another column on the samebudget sheet, prepare the budget for $2024$ utilizing the following assumptions.You are anticipating a $10\%$ increase in the number of clinic visits. With theMedicare and Medicaid cuts expected, you are anticipating a $3\%$ decrease in grossrevenue per visit. Bad debt is expected to remain the same at $5\%.$ You plan to givecurrent employees a $2\%$ raise and plan on hiring a third coder at a base salary of$$40,000$ to eliminate the contract coding expense. Rent is expected to increase by$$50/$month$,$ but utilities and the cost of the coding books per coder will remainstable. You plan to decrease the postage expense by $20\%$ and your office suppliesexpense by $10\%$ by utilizing more email communications with your patients.

Capital Purchase: At your clinic, you are considering purchasing a new piece of labequipment. You currently perform $100$ lab tests a month, charging $$15$ per test.These are sent to an outside lab that charges you $$10$ per test. The newequipment costs $$50,000.$ To perform the tests onsite instead of sending themout, you will spend $$2/$test in labor and $$6/$test in supplies. Show your math forthe following:$1.$ What would be the payback period in years?$2.$ How many tests must be performed to reach the break$-$even point?$3.$ Organizations sometimes set thresholds for payback periods due to theexpected life of equipment. Your organization has a threshold of $5$ years forthe payback period. Do you purchase the equipment? Why or why not?