3.2 Consider the following income statement: BestCare HMO Statement of Operations Year Ended June 30, 2007 (in thousands) Revenue: $26,682 1,689 242 $28,613 Premiums earned Interest and other income Total revenues Expenses: Salaries and benefits Medical supplies and drugs Insurance Provision for bad debts $15,154 7,507 3,963 19 367 385 $27,395 Interest Total expenses Net income $ 1,218 a. How does this income statement differ from the one presented in Table 3.1? b. Did BestCare spend $367,000 on new fixed assets during fiscal year 2007 If not, what is the economic rationale behind its reported depreciation expense? 90 Healthcare Finance c. Explain the provisio d. What is BestCare's total proit margin? How can it be interpreted? n for bad debts entry 3.2 Consider the following income statement: BestCare HMO Statement of Operations Year Ended June 30, 2007 (in thousands) Revenue: $26,682 1,689 242 $28,613 Premiums earned Interest and other income Total revenues Expenses: Salaries and benefits Medical supplies and drugs Insurance Provision for bad debts $15,154 7,507 3,963 19 367 385 $27,395 Interest Total expenses Net income $ 1,218 a. How does this income statement differ from the one presented in Table 3.1? b. Did BestCare spend $367,000 on new fixed assets during fiscal year 2007 If not, what is the economic rationale behind its reported depreciation expense? 90 Healthcare Finance c. Explain the provisio d. What is BestCare's total proit margin? How can it be interpreted? n for bad debts entry