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I need help creating an income statement. The first column of numbers is current

ID: 2547024 • Letter: I

Question

I need help creating an income statement. The first column of numbers is current year and the second column is prior year.

12,420

Income statement More information from my professor

Income Statement

Premium revenue not included in formula for net operating revenues

Depreciation was included on income statement and info was provided only for cash flow statement, need to remove from income statement

Expenses – corrected data below:

Administrative Expenses

17,823,107

18,830,455

Deferred credits are non-current liabilities for current year

Change in Other current liabilities should only be listed once - Change in Other Current Liabilities 172,819 – for current year

Purchased Inpatient Expenses 3,671,254 3,266,987 Income statement Purchased Outpatient Expenses 1,275,399 740,870 Income statement Daily Hospital Expenses 13,823,701 11,774,335 Income statement Contractual Adjustments ­ County Indigent Programs ­ Managed Care 89,029 Income statement Contractual Adjustments ­ Other Third Parties ­ Traditional 9,230,282 6,917,141 Income statement Contractual Adjustments ­ Medicare ­ Managed Care 36,840,646 34,438,542 Income statement Contractual - Administrative Adjustments 58,347 Income statement Contractual Adjustments ­ Medicaid ­ Traditional 15,975,595 14,045,441 Income statement Contractual Adjustments ­ Other Third Parties ­ Managed Care 66,919,480 55,975,915 Income statement Contractual Adjustments ­ Medicare ­ Traditional 91,226,630 80,836,904 Income statement Policy Discounts 679,885 Income statement Contractual Adjustments ­ Medicaid ­ Managed Care 56,195,984 54,018,557 Income statement Education Expenses 163,651 376,699 Income statement Ancillary Services - Revenues 267,470,473 257,984,067 Income statement Ancillary Expenses 38,968,446 37,644,961 Income statement Charity Discounts ­ Other 4,073,176 1,264,042 Income statement Unassigned Costs 3,498,540 3,584,145 Income statement Administrative Expenses 23,110,691 18,830,455 Income statement Capitation Premium Revenue ­ Medicare (credit balance) 7,461,384 6,254,259 Income statement Provision for Bad Debts 4,455,202 2,431,937 Income statement Revenue - Daily Hospital Services 58,160,346 46,135,149 Income statement Capitation Premium Revenue ­ Other Third Parties (credit balance) 9,201,863 2,022,696 Income statement Other Deductions from Revenue 1,681,308 5,576,806 Income statement General Expenses 19,047,952 14,388,704 Income statement Fiscal Expenses 3,698,688 2,101,829 Income statement Ambulatory Expenses 8,564,631 7,240,177 Income statement Ambulatory Services - Revenues 80,338,006 57,610,075 Income statement Research Expenses 94,588 71,154 Income statement Total Other Operating Revenue 1,136,055 960,564 Income statement Net Non-operating Revenue and Expense

12,420

60,811

Income statement More information from my professor

Income Statement

Premium revenue not included in formula for net operating revenues

Depreciation was included on income statement and info was provided only for cash flow statement, need to remove from income statement

Expenses – corrected data below:

Administrative Expenses

17,823,107

18,830,455

Deferred credits are non-current liabilities for current year

Change in Other current liabilities should only be listed once - Change in Other Current Liabilities 172,819 – for current year

Account Current Year Prior Year Cash 3,422,928 3,773,862 Balance sheet Accrued compensation and related liabilities 4,248,791 2,656,831 Balance sheet Accounts and notes receivable 52,966,361 48,883,616 Balance sheet Prepaid expenses and other current assets 13,956 33,094 Balance sheet Inventory 1,461,138 1,397,898 Balance sheet Accounts payable 2,080,892 2,657,082 Balance sheet Payable to third­party payors 400,083 321,196 Balance sheet Notes and loans payable 5,142,900 Balance sheet Other deferred credits 40,598 Balance sheet Intercompany payables 782 7,210 Balance sheet Bonds payable 7,040,952 8,539,836 Balance sheet Pledges and other receivables 7,043,254 1,386,264 Balance sheet Construction in progress 1,400,434 2,032,344 Balance sheet Equipment 27,614,701 24,861,028 Balance sheet Land improvements 4,284,122 4,284,122 Balance sheet Unrestricted Fund Balance 35,632,865 28,111,550 Balance sheet Buildings and Improvements 38,658,121 35,224,180 Balance sheet Limited use investments 5,142,901 Balance sheet Less allowance for uncollectible receivables and third­party contractual withholds -39,086,187 -35,376,597 Balance sheet Intercompany receivables 25,257 6,478 Balance sheet Other non­current liabilities 316,402 290,393 Balance sheet Other accrued expenses 232,581 269,772 Balance sheets Change - Purchase of Plant, Property and Equipment and Construction­In­Progress (6,551,104) (7,511,920) Cash flow Change in Intercompany Payables (6,428) (1,057,285) Cash flow Change in Other Accrued Expenses (37,191) 52,757 Cash flow Change - Principal Payments On Long­Term Debt (1,472,875) (89,055) Cash flow Change in Assets Whose Use is Limited (5,142,901) Cash flow Change - Other current liabilities 172,819 Cash flow Change in Intercompany Receivables (18,779) (6,478) Cash flow Change in Accrued Compensation and Related Liabilities 1,591,960 192,205 Cash flow Change in Inventory (63,240) 341,011 Cash flow Change in Prepaid Expenses and Other Current Assets 19,138 (20,288) Cash flow Change in Accounts and Notes Receivable, Net of Allowance for Uncollectible Receivables and Third­Party Contractual Withholds (373,155) (2,185,739) Cash flow Change in Deferred Credits 40,598 Cash flow Change - Proceeds from Issuance of Short­Term Notes and Loans 5,142,900 Cash flow Change in Other Current Liabilities 172,819 Cash flow Change in Accounts Payable (576,190) 546,890 Cash flow Change in Pledges and Other Receivables (5,656,990) 2,371,944 Cash flow Change in Payable to Third­Party Payors 78,887 54,035 Cash flow Purchased Inpatient Expenses 3,671,254 3,266,987 Income statement Purchased Outpatient Expenses 1,275,399 740,870 Income statement Daily Hospital Expenses 13,823,701 11,774,335 Income statement Contractual Adjustments ­ County Indigent Programs ­ Managed Care 89,029 Income statement Contractual Adjustments ­ Other Third Parties ­ Traditional 9,230,282 6,917,141 Income statement Contractual Adjustments ­ Medicare ­ Managed Care 36,840,646 34,438,542 Income statement Contractual - Administrative Adjustments 58,347 Income statement Contractual Adjustments ­ Medicaid ­ Traditional 15,975,595 14,045,441 Income statement Contractual Adjustments ­ Other Third Parties ­ Managed Care 66,919,480 55,975,915 Income statement Contractual Adjustments ­ Medicare ­ Traditional 91,226,630 80,836,904 Income statement Policy Discounts 679,885 Income statement Contractual Adjustments ­ Medicaid ­ Managed Care 56,195,984 54,018,557 Income statement Education Expenses 163,651 376,699 Income statement Ancillary Services - Revenues 267,470,473 257,984,067 Income statement Ancillary Expenses 38,968,446 37,644,961 Income statement Charity Discounts ­ Other 4,073,176 1,264,042 Income statement Unassigned Costs 3,498,540 3,584,145 Income statement Administrative Expenses 23,110,691 18,830,455 Income statement Capitation Premium Revenue ­ Medicare (credit balance) 7,461,384 6,254,259 Income statement Provision for Bad Debts 4,455,202 2,431,937 Income statement Revenue - Daily Hospital Services 58,160,346 46,135,149 Income statement Capitation Premium Revenue ­ Other Third Parties (credit balance) 9,201,863 2,022,696 Income statement Other Deductions from Revenue 1,681,308 5,576,806 Income statement General Expenses 19,047,952 14,388,704 Income statement Fiscal Expenses 3,698,688 2,101,829 Income statement Ambulatory Expenses 8,564,631 7,240,177 Income statement Ambulatory Services - Revenues 80,338,006 57,610,075 Income statement Research Expenses 94,588 71,154 Income statement Total Other Operating Revenue 1,136,055 960,564 Income statement Net Non-operating Revenue and Expense 12,420 60,811 Income statement

Explanation / Answer

Income statement

2017

2016

Particulars

Amount ($)

Amount ($)

Revenue:

Revenue from daily hospital services

     58,160,346.00

     46,135,149.00

Revenues from Ancillary services

   267,470,473.00

   257,984,067.00

Capitation premium revenue

        7,461,384.00

        6,254,259.00

Capitation premium revenue - others

        9,201,863.00

        2,022,696.00

Ambulatory revenue

     80,338,006.00

     57,610,075.00

Other operating revenue

        1,136,055.00

           960,564.00

Non-operating revenue (net)

              12,420.00

             60,811.00

(A): Total revenue

   423,780,547.00

   371,027,621.00

Expenditures:

Purchased inpatient expenses

        3,671,254.00

        3,266,987.00

Purchased outpatient expenses

        1,275,399.00

           740,870.00

Daily hospital expenses

     13,823,701.00

     11,774,335.00

County indigent programs

              89,029.00

Third parties contractual arrangements

        9,230,282.00

        6,917,141.00

Medicare managed care

     36,840,646.00

     34,438,542.00

Administrative adjustments

              58,347.00

Medicaid traditional

     15,975,595.00

     14,045,441.00

Other third parties managed care

     66,919,480.00

     55,975,915.00

Medicare traditional

     91,226,630.00

   80,836,904.00

Policy discounts

           679,885.00

Medicaid managed care

     56,195,984.00

     54,018,557.00

Education expenses

           163,651.00

           376,699.00

Ancillary expenses

     38,968,446.00

     37,664,961.00

Charity discounts

        4,073,176.00

        1,264,042.00

Unassigned cost

        3,498,540.00

        3,584,145.00

Administrative expenses

     23,110,691.00

     18,830,455.00

Provision for bad debt

        4,455,202.00

        2,431,937.00

Other deductions from revenue

        1,681,308.00

        5,576,806.00

General expenses

     19,047,952.00

     14,388,704.00

Fiscal expenses

        3,698,688.00

        2,101,829.00

Ambulatory expenses

        8,564,631.00

        7,240,177.00

Research expenses

              94,588.00

              71,154.00

Depreciation (Note 1)

        8,008,017.25

        7,251,572.20

(B): Total expenditures

   411,351,122.25

   362,797,173.20

Net profit before tax (A-B)

     12,429,424.75

        8,230,447.80

Less: Tax @30%

        3,728,827.43

        2,469,134.34

Net profit after tax

        8,700,597.33

        5,761,313.46

2017

2016

Formula

Amount ($)

Formula

Amount ($)

Depreciation on equipment @15% per annum

(27614701 X 15%)

4142205

(24861028 X 15%)

3729154

Buildings and improvements

(38658121 X10%)

3865812

(35224180 X 10%)

3522418

Total depreciation

8008017

7251572

Income statement

2017

2016

Particulars

Amount ($)

Amount ($)

Revenue:

Revenue from daily hospital services

     58,160,346.00

     46,135,149.00

Revenues from Ancillary services

   267,470,473.00

   257,984,067.00

Capitation premium revenue

        7,461,384.00

        6,254,259.00

Capitation premium revenue - others

        9,201,863.00

        2,022,696.00

Ambulatory revenue

     80,338,006.00

     57,610,075.00

Other operating revenue

        1,136,055.00

           960,564.00

Non-operating revenue (net)

              12,420.00

             60,811.00

(A): Total revenue

   423,780,547.00

   371,027,621.00

Expenditures:

Purchased inpatient expenses

        3,671,254.00

        3,266,987.00

Purchased outpatient expenses

        1,275,399.00

           740,870.00

Daily hospital expenses

     13,823,701.00

     11,774,335.00

County indigent programs

              89,029.00

Third parties contractual arrangements

        9,230,282.00

        6,917,141.00

Medicare managed care

     36,840,646.00

     34,438,542.00

Administrative adjustments

              58,347.00

Medicaid traditional

     15,975,595.00

     14,045,441.00

Other third parties managed care

     66,919,480.00

     55,975,915.00

Medicare traditional

     91,226,630.00

   80,836,904.00

Policy discounts

           679,885.00

Medicaid managed care

     56,195,984.00

     54,018,557.00

Education expenses

           163,651.00

           376,699.00

Ancillary expenses

     38,968,446.00

     37,664,961.00

Charity discounts

        4,073,176.00

        1,264,042.00

Unassigned cost

        3,498,540.00

        3,584,145.00

Administrative expenses

     23,110,691.00

     18,830,455.00

Provision for bad debt

        4,455,202.00

        2,431,937.00

Other deductions from revenue

        1,681,308.00

        5,576,806.00

General expenses

     19,047,952.00

     14,388,704.00

Fiscal expenses

        3,698,688.00

        2,101,829.00

Ambulatory expenses

        8,564,631.00

        7,240,177.00

Research expenses

              94,588.00

              71,154.00

Depreciation (Note 1)

        8,008,017.25

        7,251,572.20

(B): Total expenditures

   411,351,122.25

   362,797,173.20

Net profit before tax (A-B)

     12,429,424.75

        8,230,447.80

Less: Tax @30%

        3,728,827.43

        2,469,134.34

Net profit after tax

        8,700,597.33

        5,761,313.46

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