COURSE DESCRIPTION

1. Create the 2008 and 2009 common size income statements for Advanced Healthcare and describe why they are useful. Note that you will have to calculate Total Equity by using the formula A = L + E or A-L = E.

Statements of Operations: (Millions of Dollars) REVENUES 2008 2009 Net patient service revenue $ 30.576 $34,582 Other revenue $1853 $1834 Total revenues $ 32429 $36416 EXPENSES Salaries and wages $ 12468 $13994 Fringe benefits 2408 2568 Interest expense 1598 1776 Depreciation 2658 2778 Provision for bad debts 0655 776 Professional liability 201 218 Other 10339 11848 Total expenses $ 30.327 $33958 Excess of revenues over expenses $2102 $2458