Question
11.1 Entries for the Warren clinic 2016 income statements are listed in the following exhibit in alphabetical order. Reorder the data to reflect income statement
11.1 Entries for the Warren clinic 2016 income statements are listed in the following exhibit in alphabetical order. Reorder the data to reflect income statement format. (See textbook)
Warren Clinic
Income Statement
Revenues: |
|
|
Patient Service Revenue | 440000 |
|
Non-operating income | 40000 |
|
Other operating income | 10000 |
|
Total Revenue |
| 4900000 |
Expenses: |
|
|
Depreciation expense | 90000 |
|
General/Administrative expenses | 70000 |
|
Interest expense | 20000 |
|
Provision for bad debts | 40000 |
|
Purchased Clinic Services | 90000 |
|
Salaries and Benefits | 150000 |
|
Total Expenses |
| 460000 |
Net Income |
| 30000 |
11.2 Consider the following income statement for best care health insurance statement of operations year ending June 30th 2016 in thousands.
Revenue:
Healthcare premiums $26,682
Fees and other Revenues 1,689
Net investment income 242
Total Revenues $28,613
Benefits and expenses:
Healthcare costs $15,154
Operating expenses:
Selling expenses 3,963
General and Administration expenses 7,893
Interest Expense 385
Total benefits and expenses $27,395
Net Income $ 1,218
Compare and contrast this income statement with the ones presented in exhibits 11.1 and 11.2
What is BestCares total margin? How can it be interpreted?
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