Review the budget below and answer the questions following the budget. FINANCIAL ACCOUNTINGSTATEMENT OF REVENUE AND EXPENSES Statement of Revenue and Expenses for Group Practice for Year Ending June 30, 2006 REVENUE Patient service revenue $9,345,600 Less: Contractuals $3,364,200 Total Net Service Revenue $5,981,400 EXPENSES Salaries $2,628,500 Fringe benefits $670,268 Temporary labor $150,000 Office supplies $78,000 Mortgage payments $195,000 Maintenance $32,900 Minor equipment $47,500 Insurance $36,200 Interest $23,200 Depreciation $178,000 Miscellaneous $15,000 Total Expenses $4,054,568 Net Income (profit/loss) Excess Revenue Over Expenses $1,926,833 32.21% UNIT 8 PROJECT 1. Another name for the statement of revenue and expenses financial accounting report is the statement of cash flows. a. True b. False 2. Assess the information presented in the medical group statement of revenues and expenses and calculate the operating margin for fiscal year 2006. 3. Although not included in the medical group practice statement of revenues and expenses, other forms of operating revenue might include interest from investments, research grants, or gifts and donations. a. True b. False 4. Describe two different types of accounting, the various activities that makes each unique, and the primary users of each accounting type. 5. You have just started a new job and will be leading organization-wide revenue cycle operations for a 300-bed hospital that employs 60 physicians in a multispecialty group practice. List and describe at least six individual revenue cycle processes you will evaluate, how each affects organizational financial performance, and what information you will use in your evaluation