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please answer questions 10-12 and explain answers. Use the following income statement for Eagle Clinic (Exhibit 2) to answer questions 10-12 Exhibit 2 Eagle Clinic

please answer questions 10-12 and explain answers. image text in transcribed
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Use the following income statement for Eagle Clinic (Exhibit 2) to answer questions 10-12 Exhibit 2 Eagle Clinic Income Statement For the period ending December 31, 2015 Revenues: Patient service revenue Other revenue Interest income Total revenues $440,000 10,000 40.000 $490.000 Eenses: Salaries and benefits $150,000 Purchased clinical services 90,000 General/administrative expenses 70,000 Depreciation expense 90,000 Bad debt expense 40,000 Interest expense 20,000 Total expenses $460.000 Net Income 10. What is the clinic's net income for 2015" (2 points) a $490,000 b S40.000 c. $30,000 d. S120.000 e. None of the above 11. What is the clinic's estimated cash flow for 2015? (2 points) a b. C d e $490.000 $40.000 S301000 S120.000 None of the above 18 % & 12. What is the clinic's profit margin for 2015? (2 points) a. 6.1% b. 82% c. 7.5% d. None of the above 13. Assume that Randall Clinic has fixed costs of $500,000 and a variable cost (per visit) rate of $20. What is the total cost forecast for a volume of 5,000 patient visits? (2 points) a. S400,000 b. $500,000 c. $600,000 d. $700,000 is the problem faced by insurance companies because individuals who are more likely to have claims are also more likely to purchase insurance. (2 points) a. Moral hazard b. Adverse selection c. Fee-for-Service d. Managed Care 15. (True or False): Fee for service payment methods always create an incentive for providers to reduce the volume of services provided. (2 points) a True b. False 16. Which of the following reimbursement methods creates the greatest incentive for providers to control the cost of delivering health services? (2 points) a Cost-based reimbursement b. Charge-based reimbursement c. Per diagnosis prospective payment d. Capitation 17. All of the following are types of medical coding commonly used by healthcare providers EXCEPT C2 points)

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