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: