Problem 10-6 Modern Healthcare, a group practice clinic with 10 physicians, had the following income in 2017: $3,250,000 Revenue Less operating expenses: Salaries Physicians Nurses Nursing aide Receptionist Accounting services Training Supplies Phone and fax Insurance Depreciation Utilities Miscellaneous Total operating expenses Income before taxes Less taxes on income Net Income $1,300,000 152,000 68,500 50,000 45,000 120,000 250,000 3,750 275,000 242,000 19,800 66,000 2,592,050 657,950 230,283 $427,667 The following changes are expected in 2018: 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 $50,000 per year. CALCULATOR FULL SCREEN PRINTER VERSION 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 $50,000 per year. 3. Training costs are expected to increase by $15,000. 4. Supplies are expected to increase to be 10 percent of revenue. 5. Phone, fax, accounting services and Insurance amounts will stay the same. 6. Depreciation expense will increase by $20,000 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 35 percent. Prepare a budgeted income statement for Modern Healthcare for the year 2018. (Round answers to 0 decimal places, a. Modern Healthcare Budgeted Income Statement win in ament CALCULATOR C