Deliverable 6 - Preparing an Operating Budget

DrIdesNotes_Deliverable6_Excel_Memo.docx

Deliverable #6 – HSA5400

Who Am I? Senior Accountant

What am I doing? Create a new six-month operations budget for the clinic (Excel Spreadsheet) & THEN write a MEMO with that information.

You need TWO documents here: Excel Spreadsheet & Word MEMO

· The clinic’s revenue is projected to grow by approximately 3% as a result of a new managed care contract – How do we figure this out?

· Revenue last year = $402,220.00

· We need to ADD 3% to this to come up with THIS YEARS PROJECTED REVENUE

· To do that – change the percentage to a decimal = .03

· Then you can multiple by .03 = 402,220.00 * .03 = $12,066.60

· 402,220.00 + 12,066.60 = $414,286.60 (NEW REVENUE FOR YEAR)

· The cost of expenses is expected to increase to 1.5%.

· Do the same thing – Take last years expenses = $192,206.68

· Add the 1.5% by changing the percentage to a decimal .015

· DO THE MATH

· Take that number 192,206.68 + SUM of .015 = Find your new number

· The clinic will also be adding a new roof to the facility at a projected cost of $50,000.

· Add this in ON IT’S OWN NEW LINE

· Make sure you TOTAL everything UP!

· SAVE YOUR SPREADSHEET AS YOUR LASTNAME_DATE_DEL6 Ide_862024_Del6

· Then do your MEMO

ADDITIONAL RESOURCES

Additional Resources to help move those examples along that you need for the “A”: