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. $ 90,000 Depreciation expense 70,000 General/administrative expenses A 20,000 Interest expense 30,000 Net income 40,000 Nonoperating income 10,000 Other operating revenue fevene Patient service revenue 440,000 Provision for bad debts * 40,000 Purchased clinic services 90,000 Salaries and benefits 150,000 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. b. What is BestCare's total margin? How can it be interpreted?
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. $ 90,000 Depreciation expense 70,000 General/administrative expenses A 20,000 Interest expense 30,000 Net income 40,000 Nonoperating income 10,000 Other operating revenue fevene Patient service revenue 440,000 Provision for bad debts * 40,000 Purchased clinic services 90,000 Salaries and benefits 150,000 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. b. What is BestCare's total margin? How can it be interpreted?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Can I get help with question 11.2 A
compare and contrast this income stament with the ones presented in exhibit 11.1 and 11.2
I attached the picture with all the info
Transcribed Image Text:**End-of-Chapter Problems**
**11.1** Entries for the Warren Clinic 2016 income statement are listed below in alphabetical order. Rearrange the data to reflect the income statement format.
- Depreciation expense: $5,000
- General/administrative expenses: 70,000
- Interest expense: 20,000
- Net income: 30,000
- Nonoperating income: 40,000
- Other operating revenue: 10,000
- Patient service revenue: 440,000
- Provision for bad debts: 40,000
- Purchased clinic services: 90,000
- Salaries and benefits: 150,000
**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
**Questions:**
a. Compare and contrast this income statement with the ones presented in exhibits 11.1 and 11.2.
b. What is BestCare’s total margin? How can it be interpreted?
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