Reference the income statement for Walton Community Health Clinic Income Statement Identify at least three key budget variances within the individual line items that you feel would require additional investigation or feedback from clinic management to better understand the operational drivers.

• Explain why you selected these line items.
• Hypothesize on some possible operational reasons that you suspect could have resulted in these line item budget variances.

Walton Community Health Clinic Fiscal Year-end Income Statement Acutal Budget Variance Revenue Net Patient Revenue $ 7,588,476 $ 7,500,000 $ 88,476 Patient Volume 32,811 30,000 2,811 Other Revenue $ 78,884 $ 80,000 $ (1,116) Total Operating Revenue $ 7,667,360 $ 7,580,000 $ 87,360 Expenses Physician Salaries Physician Incentive Compensation Nursing Salaries Administrative Salaries Benefit Expenses Total Compensation Expenses $ 2,833,027 $ 3,000,000 $ $ 1,448,510 $ 1,250,000 $ $ 1,911,473 $ 1,750,000 $ $ 210,000 $ 225,000 $ $ 704,331 $ 684,750 $ $ 7,107,341 $ 6,909,750 $ (166,973) 198,510 161,473 (15,000) 19,581 197,591 13,200 462 (2,593) Medical Supply Expense Pharmacy Expense Clerical Supply Expense Depreciation Expense Rent Expense Other Expense Total General & Administrative Expenses $ $ $ $ $ $ $ 163,200 $ 200,462 $ 12,407 $ 22,000 $ 90,000 $ 40,220 $ 528,289 $ 150,000 $ 200,000 $ 15,000 $ 22,000 $ 90,000 $ 50,000 $ 527,000 $ (9,780) 1,289 Total Operating Expenses $ 7,635,630 $ 7,436,750 $ 198,880 Excess (Loss) of Revenue over Expenses $ 31,730$ 143,250 $ (111,520) Sheet1 +