Problem 10-6 Roger Healthcare, a group practice clinic with 10 physicians, had the following income in 2017: $3,350,000 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 $1,260,000 140,000 73,500 54,000 43,000 113,000 264,000 3,700 263,000 218,000 18,100 67,000 2,517,300 832,700 249,810 $582,890 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 $51,000 per year. 3. Training costs are expected to increase by $19,000. 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 $17,000 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 Roger Healthcare for the year 2018. (Round answers to 0 decimal places, e.g. 125.) Prepare a budgeted income statement for Roger Healthcare for the year 2018. (Round answers to o decimal places, e.g. 125.) Roger Healthcare Budgeted Income Statement