Question

1.What is Warren Clinic’s

net operating revenue

? Calculate the net operating revenue, yourself.

Entries for the Warren Clinic Income Statement are

listed below in alphabetical order. Reorder the

data in the proper format.

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

$440,000

Provision for Bad Debts

$40,000

Purchased Clinic Services

$90,000

Salaries and Benefits

$150,000

Total Expenses

$420,000

Question #2

$420,000

What are Warren Clinic’s

total expenses

? It is recommended that you calculate total expenses,

yourself.

Depreciation Expense

$90,000

General/Administration Expenses

$70,000

Interest Expense

$20,000

Investment Income

$40,000

Net Operating Revenues

$410,000

Other Revenue

$10,000

Patient Service Revenue

$440,000

Provision for Bad Debts

$40,000

Purchased Clinic Services

$90,000

Salaries and Benefits

$150,000

Total Expenses

$XXX

Answer 1

Particulars Amount(in $)

Net operating revenue 410000

Patient service revenue 440000

Invetment income 40000

other revenue 10000

total revenue 900000

Less

Purchased clinic services 90000

salaries and benefits 150000

General and administrative expenses 70000

intrst expense 20000

depreciation 90000

provision for bad debts 40000

miscellaneous expenses(balancing figure) 410000

total expenses 870000

Net income 30000