PART ONE: Budget Schedules & Expected Outcomes for 2021
Using the information provided, prepare the following operating and financial budgets for the twelve-month period from January 2021 to December 2021.
- Monthly Revenue Budget
- Labour Budget (including labour cost per appointment type)
- Monthly Operating Expense Budget
- Budgeted Income Statement for the year ended 31 December 2021
- Monthly Cash flow Budget for the year ended 31 December 2021
- Budgeted Balance Sheet for the year ended 31 December 2021
Your budget spreadsheet must be submitted in Excel Format (not as an appendix in your WORD document). The first worksheet should contain your raw/input data and assumptions from this assignment overview sheet. All future worksheets should be linked to this data. Show all calculations and use Excel functions where possible. While you should use examples in your text as a guide, the key to using spreadsheets is that they are structured so that others can use them and follow the flow of information without difficulty.
PART TWO: Analysis & Report to the Specialists of the ENT Clinic
Write a report (Maximum 1,500 words, 10% (+/-) will be accepted with no penalty) for the three specialists at ENT Clinic. The report should include:
- An overview of the expected results for the ENT clinic for the 2021 year including total revenue, operating expenses and expected cash position;
- a cost-volume-profit (CVP) analysis to indicate the breakeven point (in patients and revenue dollars) and provide recommendations regarding cost control strategies and how to improve the current margin of safety,
- an analysis of the business operations (i.e. current incomes and expenses) and recommendations regarding how to improve the profitability of the ENT clinic. Use industry data (e.g. market rate for salaries) to support any recommendations for changes.
- Explain how the budgeting process can assist the ENT specialists to articulate decisions about the use of resources and how the budget can be used throughout the year to analyse variances and lead to continuous improvement within the clinic.
- Use visual aids such as tables and graphs to enhance your report presentation.
The report should be submitted as a WORD (not PDF) document.