You are responsible for completing a budget for an Ambulatory Clinic. Here are the assumptions: 6 INITIAL BUDGET 7 a. The budget anticipated 40,000 inpatient days this year at an average of $750 per day. b. Inpatient expenses were budgeted at $650 per day. c. The budget anticipated 12,000 outpatient visits this year at an average of $475 revenue 9 10 11 per visit. d. Outpatient expenses were budgeted at $420 per visit. 12 13 14 ACTUAL RESULTS 15 16 a. Assume that only 34,800 or 87% of the inpatient days are going to actually be achieved 17 for the year. 18 b. The average revenue of $750 per day will be achieved for these 34,800 inpatient days. c. The Outpatient visits will actually amount to 120 % or 13 ,400 for the year. 19 20 d. The average revenue of $475 per visit will be achieved for these 13,400 visits. e. Actual inpatient expenses will amount to $13,700,000 and actual outpatient expenses will amount to $4,620,000. 21 22 23 24 25 REQUIRED 25 REQUIRED: 26 A. Prepare the budget and the actual on the attached worksheet. B. Complete a side by side comparison using your results from A above and complete the Static Variances in each category. 27 28 29 30 21 AS BUDGETED Revenue Inpatient Revenue Outpatient Subtotal Expenses -Inpatient Expenses - Outpatient Subtotal Excess of Revenue over Expe nses ACTUAL Revenue - Inpatient Revenue - Outpatient Subtotal Expenses - Inpatient Expenses - Outpatient Subtotal Excess of Revenue over Expenses STATIC BUDGET BUDGET ACTUAL VARIANCE Revenue-Inpatient Revenue -Outpatient Subtotal Expenses - Inpatient Expenses-Outpatient Subtotal Excess of Revenue over Expenses