Your answer is partlally correct. Try again Ceradyne Healthcare, a group practice clinic with 10 physicians, had the following income in 2017: Revenue $3,300,000 Less operating expenses: Salaries Physicians $1,220,000 Nurses 146,000 Nursing aide 61,500 Receptionist 49,000 Accounting services 45,000 Training 127,000 240,000 Supplies Phone and fax 3,600 254,000 Insurance Depreciation 263,000 21,800 Utilities Miscellaneous 71,000 Total operating expenses 2,501,900 Income before taxes 798,100 Less taxes on income 279,335 $518,765 Net income The following changes are expected in 2018: 1. The clinic is expecting a 2 percent decline in revenues because of increasing pressure from insurance companies 2. Physicians are planning to hire a physician assistant at a salary of $48,000 per year 3. Training costs are expected to increase by $12,000. 4. Supplies are expected to increase to be 10 percent of revenue 5. Phone, fax, accounting services and insurance amounts will stay the same. 6. Depreciation expense will increase by $19,000 per year, since the clinic is planning to purchase equipment for $125,000 7. Utilities and miscellaneous expenses are expected to increase by 5 percent next year. 8. Taxes on income will be 35 percent Prepare a budgeted income statement for Ceradyne Healthcare for the year 2018. (Round answers to 0 decimal places, e.g. 125.) For the Year Ended December 31, 2018 3,234,000 Revenue $ Operating expenses Less Salaries of Physicians 1,268,000 Salaries of Nurses 146,000 Salaries of Nursing aid 61,500 Salaries of Receptionist 49,000 45,000 Accounting services Training 139,000 Supplies 323,400 Phone and fax 3,600 Insurance 254,000 Depreciation on office and equipment 282,000 Utilities 22,890 Miscellaneous 74,550 Total operating expenses 2,668,940 Income before taxes 565,060 Less Taxes on income 197,771 367,289 Net income/(loss)