Week 4 homework BSG507.docx - BSG507-MA01 Homework Problems Week 4 11.1 Entries for the Warren Clinic 2008 income statement are listed below in

Week 4 homework BSG507.docx - BSG507-MA01 Homework Problems...

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BSG507-MA01January 31, 2016Homework Problems Week 4 11.1 - Entries for the Warren Clinic 2008 income statement are listed below in alphabetical order. Reorder the data in the proper format. Revenue:Interest income$40,000Other revenue$10,000Patient service revenue$440,000Total revenues$490,000Expenses:Salaries and benefits$150,000Bad debt expense $40,000Depreciation expense$90,000General/Administrative expenses$70,000Interest expense$20,000Purchased clinic services$90,000Total expenses$460,000Net income = Total revenues – Total expenses$30,00011.2 a. How does this income statement differ from the one presented in Table 11.1?
b. Did BestCare spend $367,000 on new fixed assets during fiscal year 2008? If not, what is the economic rationale behind its reported depreciation expense?
c. Explain the provision for bad debts entry.
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