17.4 Consider the following financial statements for BestCare HMO, a not-for-profit managed care plan: BestCare HMO...
17.4 Consider the following financial statements for BestCare HMO, a not-for-profit managed care plan:
BestCare HMO Statement of Operations and Change in Net Assets, Year Ended June 30, 2015 (in thousands)
Revenue:
Premiums earned $26,682
Coinsurance 1,689
Interest and other income 242
Total Revenues $38,613
Expenses:
Salaries and benefits $15,154
Medical supplies and drugs 7,507
Insurance 3,963
Provision for bad debts 19
Depreciation 367
Interest 385
Total Expenses $27,395
Net Income $2,118
______
BestCare HMO Balance Sheet, June 30, 2015 (in thousands)
Assets:
Cash and cash equivalents $2,737
Net premiums receivable 821
Supplies 387
Total current assets $3,945
Net Property and equipment $5,925
Total Assets $9,869
_____
Liabilities and Net Assets:
Accounts payable-medical services $2,145
Accrued expenses 929
Notes payable 141
Current portion of long-term debt 241
Total current liabilities $3,456
Long-term debt $4,295
Total liabilities $7,751
Net assets (equity) $2,118
Total liabilities and net assets $9,869
_____
B. Calculate and interpret the following ratios for BestCare:
Industry Average
Return on assets (ROA) 8.0%
Current ratio 1.3
Days cash on hand 41 days
Average collection period 7 days
Debt ratio 69%
Debt-to-equity ratio 2.2
Times interest earned (TIE) ratio 2.8
Fixed asset turnover ratio 5.2
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17.4 Consider the following financial statements for BestCare
HMO, a not-for-profit managed care plan:
BestCare HMO...
How do I solve for b? data presented in esented in the core valid for both...
How do I solve for b?
data presented in esented in the core valid for both 2014 and 2015. the following financial statements for BestCare HMO, a 174 Consider the for profit managed care plan Care HMO Statement of Operations and Change in Not Aucts, Year Ended June 30, 2015 in thousands $26,682 1.689 242 $28,613 Revenue Premiums earned Coinsurance Interest and other income Total revenues Expenses Salaries and benefits Medical supplies and drugs Insurance Provision for bad debts Depreciation...
How do you perform a Du Point analysis given average ratios. This question comes from 17.4...
How do you perform a Du Point analysis given average ratios.
This question comes from 17.4 of the book. Healthcare finance how
do I get started
17.4 Consider the following financial statements for BestCare HMPO, a not-for-profit managed care plan: BestCare HMO Statement of Operations and Change in Net Assets, Year Ended June 30, 2015 in thousands) Revenue: Premiums earned $26,682 Coinsurance 1,689 Interest and other income 242 Total revenues $28,613 Expenses: Salaries and benefits $15,154 Medical supplies and drugs...
NET INCOME BestCare Health Insurer vs. Green Valley Nursing Home Inc. 2 Consider BestCare Health Insurer's...
NET INCOME BestCare Health Insurer vs. Green Valley Nursing Home Inc. 2 Consider BestCare Health Insurer's Income Statement below BestCare Health Insurer Statement of Operations Year Ended June 30, 2016 (in Thousands) Revenues Healthcare Premiums Fees and Other Revenue Net Investment Income 26,682 1,689 242 Total revenues 28,613 Benefits and Expenses Healthcare Costs Operating Expenses: 15,154 Selling Expenses General/administrative Expenses Interest Expense 3,963 7,893 385 Total Benefits and Expenses 27,395 NET INCOME 1,218 a. What is BestCare's total profit margin?...
Cash Equity Long-term debr Long-term investments Ner property and equipment Other assets Other long-term liabilities 1J0,000...
Cash Equity Long-term debr Long-term investments Ner property and equipment Other assets Other long-term liabilities 1J0,000 120,000 100,000 150,000 40,000 10,000 4.5 Consider the following balance sheet: BestCare HMO Balance Sheet June 30, 2015 (in thousands) Assets Current Assets: Cash Net premiums receivable Supplies Total current assets Net property and equipment Total assets $2,737 821 387 $3,945 5,924 $9,869 Liabilities and Net Assets Accounts payable-medical services Accrued expenses $2,145 929 Notes payable Total current liabilities Long-term debt 382 Total liabilities...
Question text What is Best Care’s total profit margin? Hint: Review the Homework Hint PowerPoint and lecture...
Question text What is Best Care’s total profit margin? Hint: Review the Homework Hint PowerPoint and lecture and you will find the formula. BestCare HMO Statement of Operations Revenue: Premiums Earned $26,682 Coinsurance $1,689 Interest and Other Income $275 Total Revenues $28,646 Expenses: Salaries and Benefits $15,154 Medical Supplies and Drugs $7,507 Insurance $3,963 Depreciation $1,367 Interest $385 Total Expenses $28,376 Net Income $270 Select one or more: a. 6.56% b....
NET INCOME BestCare Health Insurer vs. Green Valley Nursing Home Inc 2 Consider BestCare Health Insurer's...
NET INCOME BestCare Health Insurer vs. Green Valley Nursing Home Inc 2 Consider BestCare Health Insurer's Income Statement below BestCare Health Insurer Statement of Operations Year Ended June 30, 2016 (in Thousands) Revenues Healthcare Premiums Fees and Other Revenue Net Investment Income 26,682 1,689 242 Total revenues 28,613 Benefits and Expenses 15.154 Healthcare Costs Operating Expenses Selling Expenses General/administrative Expenses Interest Expense 3,963 7,893 385 27,395 Total Benefits and Expenses 1,218 NET INCOME a. What is BestCare's total profit margin?...
What is Best Care’s cash flow? Hint: Review the Homework Hint PowerPoint and lecture and you will...
What is Best Care’s cash flow? Hint: Review the Homework Hint PowerPoint and lecture and you will find the formula. Remember 'Net Income' and 'Depreciation'.... BestCare HMO Statement of Operations Revenue: Premiums Earned $26,682 Coinsurance $1,689 Interest and Other Income $275 Total Revenues $28,646 Expenses Salaries and Benefits $15,154 Medical Supplies and Drugs $7,507 Insurance $3,963 Depreciation $1,367 Interest $385 Total Expenses $28,376 Net Income $270 Select one or more: a....
Problem 1 Conside the follbwing BestCare HMO Income Statement Revenue: Premiums earned Coninsurance Interest and other...
Problem 1 Conside the follbwing BestCare HMO Income Statement Revenue: Premiums earned Coninsurance Interest and other income S153,455 1,689 242 155,386 Total Revenues Expenses: Salaries and benefits Medical supplies and drugs Insurance Provision for bad debt Depreciation Interest $125,322 7,507 3,963 19 367 385 137,563 $ Total Expenses NET INCOME 17,823 3.2(d) What is BestCares total profit Margin? Net Income Total Revenue Profit Margin #DIV/0! 3.2(d) How can the profit margin be interpreted?
a. How does this income statement differ from the ones presented in Exhibit 3.1 and Problem...
a. How does this income statement differ from the ones presented
in Exhibit 3.1 and Problem 3.2?
b. Why does Green Valley show a provision for income taxes while
the other two income statements did not?
c. What is Green Valley’s total profit margin? How does this
value compare with the values for Sunnyvale Clinic and
BestCare?
d. The before-tax profit margin for Green Valley is operating
income divided by total revenues. Calculate Green Valley’s
before-tax profit margin. Why may...
1. What was the total increase in assets between 2011 and 2012? 2. What was the...
1. What was the total increase in assets between 2011 and
2012?
2. What was the hospital's 2012 net income (assume the hospital
is NFP and as such does not pay out dividends? Also assume that the
hospital had no charitable donations during 2012).
3. What kinds of debt and equity are used to fund the hospital's
increase in assets?
4. It's great that the hospital has positive net income and that
it's growing its asset base. What concerns do...
How do I solve for b?
data presented in esented in the core valid for both 2014 and 2015. the following financial statements for BestCare HMO, a 174 Consider the for profit managed care plan Care HMO Statement of Operations and Change in Not Aucts, Year Ended June 30, 2015 in thousands $26,682 1.689 242 $28,613 Revenue Premiums earned Coinsurance Interest and other income Total revenues Expenses Salaries and benefits Medical supplies and drugs Insurance Provision for bad debts Depreciation...
How do you perform a Du Point analysis given average ratios.
This question comes from 17.4 of the book. Healthcare finance how
do I get started
17.4 Consider the following financial statements for BestCare HMPO, a not-for-profit managed care plan: BestCare HMO Statement of Operations and Change in Net Assets, Year Ended June 30, 2015 in thousands) Revenue: Premiums earned $26,682 Coinsurance 1,689 Interest and other income 242 Total revenues $28,613 Expenses: Salaries and benefits $15,154 Medical supplies and drugs...
NET INCOME BestCare Health Insurer vs. Green Valley Nursing Home Inc. 2 Consider BestCare Health Insurer's Income Statement below BestCare Health Insurer Statement of Operations Year Ended June 30, 2016 (in Thousands) Revenues Healthcare Premiums Fees and Other Revenue Net Investment Income 26,682 1,689 242 Total revenues 28,613 Benefits and Expenses Healthcare Costs Operating Expenses: 15,154 Selling Expenses General/administrative Expenses Interest Expense 3,963 7,893 385 Total Benefits and Expenses 27,395 NET INCOME 1,218 a. What is BestCare's total profit margin?...
Cash Equity Long-term debr Long-term investments Ner property and equipment Other assets Other long-term liabilities 1J0,000 120,000 100,000 150,000 40,000 10,000 4.5 Consider the following balance sheet: BestCare HMO Balance Sheet June 30, 2015 (in thousands) Assets Current Assets: Cash Net premiums receivable Supplies Total current assets Net property and equipment Total assets $2,737 821 387 $3,945 5,924 $9,869 Liabilities and Net Assets Accounts payable-medical services Accrued expenses $2,145 929 Notes payable Total current liabilities Long-term debt 382 Total liabilities...
NET INCOME BestCare Health Insurer vs. Green Valley Nursing Home Inc 2 Consider BestCare Health Insurer's Income Statement below BestCare Health Insurer Statement of Operations Year Ended June 30, 2016 (in Thousands) Revenues Healthcare Premiums Fees and Other Revenue Net Investment Income 26,682 1,689 242 Total revenues 28,613 Benefits and Expenses 15.154 Healthcare Costs Operating Expenses Selling Expenses General/administrative Expenses Interest Expense 3,963 7,893 385 27,395 Total Benefits and Expenses 1,218 NET INCOME a. What is BestCare's total profit margin?...
Problem 1 Conside the follbwing BestCare HMO Income Statement Revenue: Premiums earned Coninsurance Interest and other income S153,455 1,689 242 155,386 Total Revenues Expenses: Salaries and benefits Medical supplies and drugs Insurance Provision for bad debt Depreciation Interest $125,322 7,507 3,963 19 367 385 137,563 $ Total Expenses NET INCOME 17,823 3.2(d) What is BestCares total profit Margin? Net Income Total Revenue Profit Margin #DIV/0! 3.2(d) How can the profit margin be interpreted?
a. How does this income statement differ from the ones presented
in Exhibit 3.1 and Problem 3.2?
b. Why does Green Valley show a provision for income taxes while
the other two income statements did not?
c. What is Green Valley’s total profit margin? How does this
value compare with the values for Sunnyvale Clinic and
BestCare?
d. The before-tax profit margin for Green Valley is operating
income divided by total revenues. Calculate Green Valley’s
before-tax profit margin. Why may...
1. What was the total increase in assets between 2011 and
2012?
2. What was the hospital's 2012 net income (assume the hospital
is NFP and as such does not pay out dividends? Also assume that the
hospital had no charitable donations during 2012).
3. What kinds of debt and equity are used to fund the hospital's
increase in assets?
4. It's great that the hospital has positive net income and that
it's growing its asset base. What concerns do...
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