Question: marx healthcare a group practice clinic with 10 physicians had...

Marx Healthcare, a group practice clinic with 10 physicians, had the following income in 2017:

Revenue								$3,350,000
Less operating expenses:
	Salaries
		Physicians			$1,340,000
		Nurses			146,000
		Nursing aide			62,500
		Receptionist			50,000
	Accounting services				46,000
	Training				130,000
	Supplies				259,000
	Phone and fax				3,850
	Insurance				260,000
	Depreciation				230,000
	Utilities				18,600
	Miscellaneous				68,000
	Total operating expenses							2,613,950
Income before taxes								736,050
Less taxes on income								257,618
Net income								$478,432

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 $46,000 per year.
3.		Training costs are expected to increase by $10,000.
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 $22,000 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 Marx Healthcare for the year 2018. (Round answers to 0 decimal places, e.g. 125.)