Using the Microsoft Excel "fake" Pro-Forma of a clinic above:

1. 1) When comparing the projected performance with the actual financial performance, are the owners happy with the clinics financial performance?
2. 2) Which had a bigger impact on the actual overall financial performance of the clinic? Revenues or expenses?
3. 3) Which specific 2 budget items showed the biggest $$ variances? Comment on what you believe were possible causes for these variances.
4. 4) Explain how you can use at % variances information?

Actual Results End of 2021 $ Variance % Variance Pro Forma Year 2021 Revenues Private Insurance $ 610,000 Medicare $ 240,000 Medicaid $ 30,000 Self-pay $ 15,000 Total revenue $ 895,000 $ $ $ $ $ 552,750 257,040 58,950 32,520 901,260 $ $ $ $ $ (57,250) 17,040 28,950 17,520 6,260 -9.4% 7.1% 96.5% 116.8% 0.7% Expenses Salaries and Benefits $ Medical Supplies $ Administrative Supplies $ Rent and Utilities $ Total expenses $ 702,000 140,000 8,000 52,000 902,000 $ $ $ $ $ 707,109 140,216 7,526 52,620 907,471 $ $ $ $ $ 5,109 216 (474) 620 5,471 0.7% 0.2% -5.9% 1.2% 0.6% Income/Loss $ (7,000) $6,210 $ 789 Actual Results End of 2021 $ Variance % Variance Pro Forma Year 2021 Revenues Private Insurance $ 610,000 Medicare $ 240,000 Medicaid $ 30,000 Self-pay $ 15,000 Total revenue $ 895,000 $ $ $ $ $ 552,750 257,040 58,950 32,520 901,260 $ $ $ $ $ (57,250) 17,040 28,950 17,520 6,260 -9.4% 7.1% 96.5% 116.8% 0.7% Expenses Salaries and Benefits $ Medical Supplies $ Administrative Supplies $ Rent and Utilities $ Total expenses $ 702,000 140,000 8,000 52,000 902,000 $ $ $ $ $ 707,109 140,216 7,526 52,620 907,471 $ $ $ $ $ 5,109 216 (474) 620 5,471 0.7% 0.2% -5.9% 1.2% 0.6% Income/Loss $ (7,000) $6,210 $ 789