Task #1: South Shore Medical Clinic is expanding its operations. As you will notice from Year 3 to Year 4, they have increased their revenue and encounted additional expenses. In addition, they have rented a new office at the end of the year so their rent expense is going to increase (they will now have two offices). In addition, they have added 2 additional staff members to payroll. Using the Income Statement below, prepare a budget that takes these changes into account for the upcoming year. Suggest the budget amounts for Year 5 in the column below.

ACTUAL BUDGET Revenues: Service Fee Revenue $ 160,000 Total Revenues Expenses: Advertising Expense $ 20,000 Shipping Expense $ 12,000 Salaries Expense $ 80,000 Rent Expense $ 32,000 Utilities Expense $ 5,200 Total Expenses Income: Net Income $ 10,800