Problem 10-6 Modern Healthcare, a group practice clinic with 10 physicians, had the following income in 2014: Revenue $3,200,000 Less operating expenses: Salaries Physicians $1,240,000 Nurses 150,000 Nursing aide 72,000 Receptionist 48,000 Accounting services 45,000 Training 117,000 Supplies 252,000 Phone and fax 3,850 Insurance 273,000 Depreciation 237,000 Utilities 17,200 Miscellaneous 64,000 Total operating expenses 2,519,050 Income before taxes 680,950 Less taxes on income 204,285 Net income $476,665 The following changes are expected in 2015: 1. The clinic is expecting a 2 percent decline in revenues because of increasing pressure from insurance companies. 2. Physicians are planning to hire a physician assistant at a salary of $48,000 per year. 3. Training costs are expected to increase by $11,000. 4. Supplies are expected to increase to be 10 percent of revenue. 5. Phone, fax, and insurance amounts will stay the same. 6. Depreciation expense will increase by $19,000 per year, since the clinic is planning to purchase equipment for $125,000. 7. Utilities and miscellaneous expenses are expected to increase by 5 percent next year. 8. Taxes on income will be 30 percent. Prepare a budgeted income statement for Modern Healthcare for the year 2015.