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?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter4: Accounting For Retail Operations

Section: Chapter Questions

Problem 4.4MBA

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