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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Question
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
![Chapter 11: Reporting Profits
347
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 *
General/administrative expenses A
70,000
20,000
Interest expense Y
30,000
Net income
40,000
Nonoperating income
10,000
Other operating revenue
fvene
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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb1e07ee1-55e6-46b3-bc84-be9f36048b70%2Fccebee89-0fff-4c68-b712-82c505482af1%2F142bl3l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Chapter 11: Reporting Profits
347
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 *
General/administrative expenses A
70,000
20,000
Interest expense Y
30,000
Net income
40,000
Nonoperating income
10,000
Other operating revenue
fvene
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?
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