Question

What are Warren Clinic’s total expenses?

Entries for the Warren Clinic Income Statement are listed below in alphabetical order. Reorder the data in the proper format. Select the appropriate response.

Depreciation Expense                                     $90,000

General/Administration Expenses                  $70,000

Interest Expense                                              $20,000

Investment Income                                         $40,000

Net Operating Revenues                                 $XXX

Other Revenue                                                $10,000

Patient Service Revenue                                 $500,000

Provision for Bad Debts                                 $40,000

Purchased Clinic Services                               $80,000

Salaries and Benefits                                      $175,000

Total Expenses                                                $XXX

Select one or more:

a. $498,000

b. $375,000

c. $435,000

d. $420,000

Answer 1

c.$435,000.

depreciation expense	90,000
general/administration expenses	70,000
interest expense	20,000
purchased clininc services	80,000
salaries and benefits	175,000
total expenses	435,000

note: provision for bad debts is an estimate and not and expense.