[SOLVED] Operating Budget

Scenario One year ago, Metropolitan Memorial expanded its operations into a rural community located approximated a hundred miles from its main facility. The clinic offers a wide array of outpatient services. As the Senior Accountant, you are reviewing the clinic’s operating budget https://sfcontroller.org/sites/default/files/FileCenter/Documents/6215-FY%202014-15%206-Month%20Report.pdf from the previous year. You have been asked by the hospital’s chief administrator to create a new six-month operations budget for the clinic. Instructions Using an Excel spreadsheet, create a new six-month budget for the clinic that includes the following revenue and expense projections: The clinic’s revenue is projected to grow by approximately 3% as a result of a new managed care contract. The cost of expenses is expected to increase to 1.5%. The clinic will also be adding a new roof to the facility at a projected cost of $50,000. ***Created the Excel 6-Month Budget projections. Attached with the files. I highlighted the 6 month Projections. *** Then prepare a memo for the chief administrator. The memo should include a 1.) review of the previous year’s budget, 2.) an analysis of the upcoming changes (figures above), and a 3.) discussion about the impacts that these changes will have on the budget for the upcoming year. Rubric requires the below for full credit: 1. Memo includes a complete and thorough review of the year’s budget with multiple examples or supporting details. 2. Memo includes a comprehensive analysis of the proposed changes, incorporating the following figures: clinic revenue growth of approximately 3%, a result of the new managed care contract expense cost increase of 1.5% new roof for facility at $50,000 3. Memo includes a clear and thorough discussion on the impacts that the changes will have on the budget for the upcoming year. Includes multiple examples or supporting details.

 

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