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P11.1 Entries of the Warren Clinic 2012 income statement are listed below AND P11.2 BestCare HMO

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Question;P11.1 Entries of the Warren Clinic 2012 income statement are listed below in alphabetical order. Reorder the data in the proper format.Bad bet expense $40,000Depreciation expense 90,000General/administrative expense 70,000Interest expense 20,000Nonoperating income 40,000Net Income 30.000Other Operating Revenue 10,000Patient Service Revenue 440,000Purchased Clinic Services 90,000Salaries and Benefits 150,000P11.2Consider the following income statement:BestCare HMO statement of operations Year ended june 30,2011 (in thousands)Revenue:premiums earned 26,682coinsurance 1,689interest and other income 242total revenues 28,613Expenses:salaries and benefits 15,154medical supplies and drugs 7,507insurance 3,963provision for bad debts 19depreciation 367interest 385total expenses 27,395net income 1,218a.) how does this income statement differ from the one presented in exhibit 11.1?b) did the best care spend 367,000 on new fixed assets during fiscal year 2011?? If not, what is the total economic rationale behind its reported depreciation expense?c) explain the provision for bad debts entryd) What is BestCare?s total margin? How can it be interpreted?

 

Paper#37827 | Written in 18-Jul-2015

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