Multiple Statements. The following are account balances (in ’000) at September 30, 20X1 for HMO Scotland. Prepare:

(a) balance sheet; and

(b) income statement.

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Income Tax Expense $2,100 Prepaid Expense $2,000 Physician Services Expense $38,000 Long-term Investments $12,000 Premium Revenues $118,000 Cash and Cash Equivalents $68,000 Marketing Expense $12,500 Compensation Expense $23,000 Other Non-current Assets $2,800 Interest Income and Other Revenue $4,500 Accrued Expense $3,300 Outside Referral Expense $7,500 Claims Payable - Medical $37,000 Medicare Revenues $13,000 Inventory $3,500 Occupancy and Depreciation Expense $5,500 Owners' equity $66,600 Emergency Room Expense $3,200 Net Property and Equipment $13,000 Premium Receivables $12,000 Inpatient Service Expense Notes Payable Interest Expense $22,000 $4,500 $2,500