I need help with 11.2 (A)
END-OF-CHAPTER PROBLEMS 11.1 Entries for the Warren Clinic 2016 income statement are listed in the following exhibit in alphabetical order. Reorder the data to reflect income statement format. Depreciation expense General/administrative expenses Interest expense Net income Nonoperating income Other operating revenue Patient service revenue Provision for bad debts Purchased clinic services Salaries and benefits $ 90.000 70,000 20,000 30,000 40,000 10,000 440,000 40.000 90,000 150,000 11.2 Consider the following income statement: 242 BestCare Health Insurer Statement of Operations Year Ended June 30, 2016 (in Thousands) Revenue: Healthcare premiums $26,682 Fees and other revenue 1,689 Net investment income Total revenues $28,613 Benefits and expenses Healthcare costs $ 15.154 Operating expenses: Selling expenses 3.963 General and administrative expenses 7.893 Interest expense 385 Total benefits and expenses $27.395 Net income $1,218 a. Compare and contrast this income statement with the ones presented in exhib- its 11.1 and 11.2 b. What is BestCare's total margin? How can it be interpreted? 11.2 Consider the following income statement: BestCare Health Insurer Statement of Operations Year Ended June 30, 2016 (in Thousands) Revenue: Healthcare premiums $26,682 Fees and other revenue 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 administrative expenses 7,893 Interest expense 385 Total benefits and expenses $27,395 Net income $ 1,218 a. Compare and contrast this income statement with the ones presented in exhib- its 11.1 and 11.2. END-OF-CHAPTER PROBLEMS 11.1 Entries for the Warren Clinic 2016 income statement are listed in the following exhibit in alphabetical order. Reorder the data to reflect income statement format. Depreciation expense General/administrative expenses Interest expense Net income Nonoperating income Other operating revenue Patient service revenue Provision for bad debts Purchased clinic services Salaries and benefits $ 90.000 70,000 20,000 30,000 40,000 10,000 440,000 40.000 90,000 150,000 11.2 Consider the following income statement: 242 BestCare Health Insurer Statement of Operations Year Ended June 30, 2016 (in Thousands) Revenue: Healthcare premiums $26,682 Fees and other revenue 1,689 Net investment income Total revenues $28,613 Benefits and expenses Healthcare costs $ 15.154 Operating expenses: Selling expenses 3.963 General and administrative expenses 7.893 Interest expense 385 Total benefits and expenses $27.395 Net income $1,218 a. Compare and contrast this income statement with the ones presented in exhib- its 11.1 and 11.2 b. What is BestCare's total margin? How can it be interpreted? 11.2 Consider the following income statement: BestCare Health Insurer Statement of Operations Year Ended June 30, 2016 (in Thousands) Revenue: Healthcare premiums $26,682 Fees and other revenue 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 administrative expenses 7,893 Interest expense 385 Total benefits and expenses $27,395 Net income $ 1,218 a. Compare and contrast this income statement with the ones presented in exhib- its 11.1 and 11.2
