You are a management accountant working in the Finance team at Miles private hospital. You have been assigned to assist the ENT (Ear, Nose and Throat) specialists that operate out of rented premises on level 6 at the hospital. You are to prepare their master budget for 2021 and make recommendations on how they could improve their operations. There are three (3) ENT Specialists in the practice; Dr Janet Courtney, Dr Samantha Downer and Dr John Malouf. They are supported by two (2) administrative staff; Daniel Hall and Julie Sky. CE This is a fictional hospital and clinic based on a real case shared by SCU Alumni, Nicholas Hoffman in the Industry Conversations Podcast Episode #2. Please listen to this podcast as background to this assignment. It is accessible via the BlackBoard Learning site in the "Career & Employability" folder. The following information has been gathered about the practice: ENT Clinic, John Flynn Hospital Balance Sheet As at 31 December 2020 Assets SAUD Cash 56,500 Accounts Receivable 48,895 ENT Equipment 1,560,000 Less: Accumulated Depreciation (190,000) Total Assets $1,475,395 Liabilities & Shareholder Equity Accounts Payable Bank Loan Retained Earnings Total Liabilities & Shareholders' Equity 56,400 600,000 818,995 $1,475,395 90 ENT Equipment: Depreciation on the ENT equipment totals $95,000 per year. Depreciation is recorded monthly. Bank Loan: The business has an interest only loan and the interest is paid monthly. The principle can be repaid at any time. The interest rate payable on the loan is 8% per annum. Expected patient visits for each of the ENT specialist for 2021 are indicated in the table below. 75% of the visits are expected to be half-hour appointments and the remainder will be one hour surgeries: Dr Janet Courtney Dr Samantha Downer Dr John Malouf January 2021 80 95 February 2021 80 80 95 March 2021 80 80 95 April 2021 80 80 95 May 2021 70 80 95 June 2021 70 80 95 July 2021 50 80 95 August 2021 50 80 95 September 2021 80 95 October 2021 40 80 95 November 2021 40 80 95 December 2021 50 95 January 2022 40 80 95 February 2020 40 80 95 40 80 The average fees received for the two (2) different types of appointments are $260 for half an hour (30 minutes) appointments and $400 for one hour surgeries (60 minutes). Cash collections: Sixty per cent (60%) of the revenue received for each month's ENT's services and surgeries is collected during the month when the services and surgeries are rendered and the remainder (40%) is collected the following month. The following table outlines the operating costs for the year. Operating costs Payment Rent $1 000 /month Paid monthly Utilities (Water & Electricity) $120 / month Paid quarterly Insurance $10 000 / year Paid monthly Telephone, Internet & IT support $200 /month Paid monthly General Office Expenses $200 /month Paid monthly Surgical supplies $2600/ month Paid quarterly Repairs & maintenance of ENT $700 / quarter Paid March, June, equipment September & December Each ENT Specialist's Individual Salary $300 000/year Paid monthly excluding on-costs Each Administrative Assistants Salary $70 000/year Paid monthly excluding on-costs Payments: It is estimated that 30% of all operating expenses will be paid in the month they are due and the remaining 70% will be paid in the following month. Salaries: The ENT specialists and administrative staff all receive an annual salary that is paid monthly. It is estimated that their on-costs are 30% of their annual salary. They work 37.5 hours per week. Each employee's allowance for annual leave, public holidays and sick leave amounts to 8 weeks per year. They are also given an allowance for non-billable time of 2 hours per week which includes professional development, department meetings and idle time. Ignore GST and Income Tax. Using the information provided, prepare the following operating and financial budgets for the twelve-month period from January 2021 to December 2021. Operating Budgets: 1. Monthly Revenue Budget 2. Labour Budget (including labour cost per appointment type) 3. Monthly Operating Expense Budget Financial Budgets: 1. Budgeted Income Statement for the year ended 31 December 2021 2. Monthly Cash flow Budget for the year ended 31 December 2021 3. Budgeted Balance Sheet for the year ended 31 December 2021 Your budget spreadsheet must be submitted in Excel Format (not as an appendix in your WORD document). The first worksheet should contain your raw/input data and assumptions from this assignment overview sheet. All future worksheets should be linked to this data. Show all calculations and use Excel functions where possible. While you should use examples in your text as a guide, the key to using spreadsheets is that they are structured so that others can use them and follow the flow of information without difficulty. You are a management accountant working in the Finance team at Miles private hospital. You have been assigned to assist the ENT (Ear, Nose and Throat) specialists that operate out of rented premises on level 6 at the hospital. You are to prepare their master budget for 2021 and make recommendations on how they could improve their operations. There are three (3) ENT Specialists in the practice; Dr Janet Courtney, Dr Samantha Downer and Dr John Malouf. They are supported by two (2) administrative staff; Daniel Hall and Julie Sky. CE This is a fictional hospital and clinic based on a real case shared by SCU Alumni, Nicholas Hoffman in the Industry Conversations Podcast Episode #2. Please listen to this podcast as background to this assignment. It is accessible via the BlackBoard Learning site in the "Career & Employability" folder. The following information has been gathered about the practice: ENT Clinic, John Flynn Hospital Balance Sheet As at 31 December 2020 Assets SAUD Cash 56,500 Accounts Receivable 48,895 ENT Equipment 1,560,000 Less: Accumulated Depreciation (190,000) Total Assets $1,475,395 Liabilities & Shareholder Equity Accounts Payable Bank Loan Retained Earnings Total Liabilities & Shareholders' Equity 56,400 600,000 818,995 $1,475,395 90 ENT Equipment: Depreciation on the ENT equipment totals $95,000 per year. Depreciation is recorded monthly. Bank Loan: The business has an interest only loan and the interest is paid monthly. The principle can be repaid at any time. The interest rate payable on the loan is 8% per annum. Expected patient visits for each of the ENT specialist for 2021 are indicated in the table below. 75% of the visits are expected to be half-hour appointments and the remainder will be one hour surgeries: Dr Janet Courtney Dr Samantha Downer Dr John Malouf January 2021 80 95 February 2021 80 80 95 March 2021 80 80 95 April 2021 80 80 95 May 2021 70 80 95 June 2021 70 80 95 July 2021 50 80 95 August 2021 50 80 95 September 2021 80 95 October 2021 40 80 95 November 2021 40 80 95 December 2021 50 95 January 2022 40 80 95 February 2020 40 80 95 40 80 The average fees received for the two (2) different types of appointments are $260 for half an hour (30 minutes) appointments and $400 for one hour surgeries (60 minutes). Cash collections: Sixty per cent (60%) of the revenue received for each month's ENT's services and surgeries is collected during the month when the services and surgeries are rendered and the remainder (40%) is collected the following month. The following table outlines the operating costs for the year. Operating costs Payment Rent $1 000 /month Paid monthly Utilities (Water & Electricity) $120 / month Paid quarterly Insurance $10 000 / year Paid monthly Telephone, Internet & IT support $200 /month Paid monthly General Office Expenses $200 /month Paid monthly Surgical supplies $2600/ month Paid quarterly Repairs & maintenance of ENT $700 / quarter Paid March, June, equipment September & December Each ENT Specialist's Individual Salary $300 000/year Paid monthly excluding on-costs Each Administrative Assistants Salary $70 000/year Paid monthly excluding on-costs Payments: It is estimated that 30% of all operating expenses will be paid in the month they are due and the remaining 70% will be paid in the following month. Salaries: The ENT specialists and administrative staff all receive an annual salary that is paid monthly. It is estimated that their on-costs are 30% of their annual salary. They work 37.5 hours per week. Each employee's allowance for annual leave, public holidays and sick leave amounts to 8 weeks per year. They are also given an allowance for non-billable time of 2 hours per week which includes professional development, department meetings and idle time. Ignore GST and Income Tax. Using the information provided, prepare the following operating and financial budgets for the twelve-month period from January 2021 to December 2021. Operating Budgets: 1. Monthly Revenue Budget 2. Labour Budget (including labour cost per appointment type) 3. Monthly Operating Expense Budget Financial Budgets: 1. Budgeted Income Statement for the year ended 31 December 2021 2. Monthly Cash flow Budget for the year ended 31 December 2021 3. Budgeted Balance Sheet for the year ended 31 December 2021 Your budget spreadsheet must be submitted in Excel Format (not as an appendix in your WORD document). The first worksheet should contain your raw/input data and assumptions from this assignment overview sheet. All future worksheets should be linked to this data. Show all calculations and use Excel functions where possible. While you should use examples in your text as a guide, the key to using spreadsheets is that they are structured so that others can use them and follow the flow of information without difficulty