Question
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
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 | |||||
Operating Margin: |
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