6Operating Revenues
Patient Service Revenue	$435000
Bad Debt	$15000
Net Patient service Revenues	$420000
Operating Expenses
Salaries	$180000
Employee Benefits	$45000
Supplies	$53000
Depreciation	34000
Rent, lease, Utilities	$12000
Other operating expenses	$324000
Excess of Revenues over Expenses	$96000
supplies	53000
depreciation	34000
rent, lease and utilities	12000
total operating expenses	324000
excess of revenue over expenses	96000

A hospitals projected revenues for fiscal year 2014 of $335,000 and bad debt of $15000. Use the given statement to answer the following question. Why was there a profit for this time period? 1) salaries were lower than expected. 2) bad debt was higher than expected. 3) patient service revenue was higher than expected. 4) rent, leases and utilities were lower than expected. Please explain in detail. Thank you