One of the owners of the Fleming Medical Group recently attended a conference on medical practice management, learned of flexible budgeting, and believes it can help the practice better manage its revenues and expenses Using the table in Problem 14 3, BUILD a flexible budget based on 2022 year to date actual expenses and visits, a 4 inflation factor for each line item, and 52,560 forecast patient visits in 2023 What are the total budget, projected net income, and profit margin Did net income and profit margin increase from the incremental budget prepared in Problem 14 3 2021 2022 YTD Actual 2022 YTD Budget Budget 2023 Revenue $4,885,987 $2,964,750 $2,950,000 Operating Expenses Physician salaries $960,000 $585,306 $576,800 Nursing staff salaries 1,380,000 857,157 829,150 Mgt and clerical salaries 780,000 466,971 468,650 HE IS 238,680 143,397 143,407 Health Insurance 390,000 238,760 234,325 Retirement 124,800 76,763 74,984 Unemployment 31,200 18,323 18,746 Medications 148,152 91,687 89,015 Medical instruments 102,792 64,287 61,761 Bandages, gauze 57,468 34,140 34,529 Gloves, gowns 40,416 24,476 24,283 Sterile wipes 26,820 15,780 16,114 Office supplies 115,200 69,388 69,216 Cleaning supplies 39,048 23,103 23,461 Rent 144,000 89,251 86,520 Maintenance 13,764 11,245 8,270 Electricity 10,788 6,684 6,482 Gas 18,504 11,215 11,118 Water and sewage 6,756 4,225 4,059 Telephone 3,228 2,004 1,939 Housekeeping 36,000 21,694 21,630 Travel meetings meals 7,908 4,744 4,751 Prof insurance 22,380 15,669 13,447 CME 29,856 17,994 17,938 Other expenses 57,732 35,955 34,687 $4,785,492 $2,920,218 $2,875,282 Total visits 51,986 30,331 30,672 52,560 Problem 14 3 14 3 The Fleming Medical Group has had a modest net income recently, and the first six months of 2022indicate that their profit margin may be less than 2 if current performance continues The owners want to put greater emphasis on budgeting to improve financial performance Using the following table create an incremental budget for the practice based on 2022 year to date actual expenses and a 4 inflation factor for each line item What are the total budget, projected ne income, and profit margin

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One of the owners of the Fleming Medical Group recently attended a conference on medical practice management, learned of flexible budgeting, and believes it can

One of the owners of the Fleming Medical Group recently attended a conference on medical practice management, learned of flexible budgeting, and believes it can help the practice better manage its revenues and expenses. Using the table in Problem 14-3, BUILD a flexible budget based on 2022 year to date actual expenses and visits, a 4% inflation factor for each line item, and 52,560 forecast patient visits in 2023. What are the total budget, projected net income, and profit margin? Did net income and profit margin increase from the incremental budget prepared in Problem 14-3?

	2021	2022 YTD Actual	2022 YTD Budget	Budget 2023
Revenue	$4,885,987	$2,964,750	$2,950,000

Operating Expenses
Physician salaries	$960,000	$585,306	$576,800
Nursing staff salaries	1,380,000	857,157	829,150
Mgt and clerical salaries	780,000	466,971	468,650
HE IS	238,680	143,397	143,407
Health Insurance	390,000	238,760	234,325
Retirement	124,800	76,763	74,984
Unemployment	31,200	18,323	18,746
Medications	148,152	91,687	89,015
Medical instruments	102,792	64,287	61,761
Bandages, gauze	57,468	34,140	34,529
Gloves, gowns	40,416	24,476	24,283
Sterile wipes	26,820	15,780	16,114
Office supplies	115,200	69,388	69,216
Cleaning supplies	39,048	23,103	23,461
Rent	144,000	89,251	86,520
Maintenance	13,764	11,245	8,270
Electricity	10,788	6,684	6,482
Gas	18,504	11,215	11,118
Water and sewage	6,756	4,225	4,059
Telephone	3,228	2,004	1,939
Housekeeping	36,000	21,694	21,630
Travel/meetings/meals	7,908	4,744	4,751
Prof. insurance	22,380	15,669	13,447
CME	29,856	17,994	17,938
Other expenses	57,732	35,955	34,687
	$4,785,492	$2,920,218	$2,875,282
Total visits	51,986	30,331	30,672	52,560

Problem 14.3

14.3

The Fleming Medical Group has had a modest net income recently, and the first six months of 2022indicate that their profit margin may be less than 2% if current performance continues. The owners want to put greater emphasis on budgeting to improve financial performance. Using the following table create an incremental budget for the practice based on 2022 year-to-date actual expenses and a 4% inflation factor for each line item. What are the total budget, projected ne income, and profit margin?