Homework Answers
a) Best care's total profit margin
Total profit margin = Net Income / Total Revenue
Total profit margin = 1218 / 28613 ( information given in thousands)
Total profit margin = 0.042568 or 4.26 % (rounded off upto two decimals)
b) Total profit margin indication and how do we interpret this information
As the formula suggests, the total profit margin indicates the percentage of income or profit earned per dollar of sales. Here the total profit margin of Best Care can be interpreted as the company is making a profit of 4.26 cents per dollar of revenue earned.
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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...
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?...
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...
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...
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?
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....
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 Consider the following Green Valley Nursing Home Income Statement Revenue: Net patient service revenues...
Problem 1 Consider the following Green Valley Nursing Home Income Statement Revenue: Net patient service revenues Other income $2,862,000 106,146 $2,968,146 Total Revenues Expenses Salaries and benefits Medical supplies and drugs $ Insurance and other Provision for bad debt Depreciation Interest $1,132,000 966,781 296,357 110,000 85,000 206,780 S2,796,918 Total Expenses Operating income Provision for income taxes 171,228 31,167 NET INCOME 140,061 3.3(b) Why does Green Valley show a provision for income taxes while BestCare HMO does not? 3.2(c) What is...
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...
I would like to check my work for problem 3.3 on pg 105 in Healthcare Finance...
I would like to check my work
for problem 3.3 on pg 105 in Healthcare Finance 5th ed. Will
someone help?
a) This income statement is different in the fact that their
revenue (non-operating revenue) is combined with operating revenue
and in Exhibit 3.1 the non-operating revenue is categorized at the
bottom. This statement also has an addition of income taxes
suggesting that they are investor-owned. This statement is true to
the numbers given whereas the previous two statements are...
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...
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?...
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...
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?
Problem 1 Consider the following Green Valley Nursing Home Income Statement Revenue: Net patient service revenues Other income $2,862,000 106,146 $2,968,146 Total Revenues Expenses Salaries and benefits Medical supplies and drugs $ Insurance and other Provision for bad debt Depreciation Interest $1,132,000 966,781 296,357 110,000 85,000 206,780 S2,796,918 Total Expenses Operating income Provision for income taxes 171,228 31,167 NET INCOME 140,061 3.3(b) Why does Green Valley show a provision for income taxes while BestCare HMO does not? 3.2(c) What is...
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...
I would like to check my work
for problem 3.3 on pg 105 in Healthcare Finance 5th ed. Will
someone help?
a) This income statement is different in the fact that their
revenue (non-operating revenue) is combined with operating revenue
and in Exhibit 3.1 the non-operating revenue is categorized at the
bottom. This statement also has an addition of income taxes
suggesting that they are investor-owned. This statement is true to
the numbers given whereas the previous two statements are...
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...
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