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Northwest Family Clinic provides the following income statement for the most recent period: Income Statement Revenues: Net patient service revenue $366,000 Operating Expenses: Medical services
Northwest Family Clinic provides the following income statement for the most recent period:
Income Statement | ||
Revenues: | ||
Net patient service revenue | $366,000 | |
Operating Expenses: | ||
Medical services | $141,000 | |
Support services | 91,000 | |
General services | 82,000 | |
Depreciation | 43,600 | (357,600) |
Operating Income | 8,400 | |
Other Income and Expenses: | ||
Interest income | 42,800 | |
Interest expense | 25,200 | 17,600 |
Net Income | $26,000 |
Additional information:
Percentage of revenues on credit: 70%
Maximum annual debt service: $24,800
What is the clinic's Debt Service Coverage Ratio?
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