1.Interpret and analyze Commonwealth's statement of operations and balance sheet for 2017.

Statements of Operations:

(Millions of Dollars)

2016 2017

Premium revenue $313.7 $357.6

Interest revenue 2.4 3.5

Total revenues $316.1 $361.1

Operating expenses:

Medical costs $263.0 $291.8

Selling and administrative 36.8 43.6

Depreciation 4.7 5.0

Total operating expenses $304.5 $340.4

Net income $11.6 $20.7

Balance Sheets:

(Millions of Dollars)

2016 2017

Cash $37.2 $27.2

Short-term investments 42.7 60.9

Premiums receivable 3.7 7.4

Total current assets $83.6 $95.5

Net plant and equipment 30.0 31.7

Total assets $113.6 $127.2

Medical costs payable $44.8 $48.7

Accounts payable/accruals 15.4 17.3

Total current liabilities $60.2 $66.0

Long-term debt 17.1 4.2

Net assets (equity) 36.3 57.0

Total claims $113.6 $127.2