Question details

Income Statement and Balance Sheet
$ 10.00

SHOW ALL WORK- And all calculations

Determine the amount of net operating income that would result for a hospital whose payer mix and expected volume (100 cases) is as follows:

(1)

30 Medicare cases

 

pay $2,000 per case

 

 

30 Blue Cross Blue Shield cases

 

pay $2,200 per case

 

 

20 commercial cases

 

pay 100 percent of charges

 

 

10 Medicaid cases

 

pay average cost

 

 

8 self-pay cases

 

pay 100 percent of charges

 

 

2 charity cases

 

pay nothing

 

 

 

 

 

 

 

Average cost per case is expected to be $2,200, and the average charge per case is $2,500

 

 

(1)

  1.  Calculate Gross patient revenue and deductions from gross patient revenue.
  2.  Define revenue
  3.  Define fee for service, discounted fee for service, charity services, and payment before service is delivered.  ( all written assignments must be in APA format)

 

 

(3)

Time Value of Money  (TVM)

 

Calculate the Future Value of $1 in each of these 3 projects

 

TVM Exercise

Project                            Number of periods                            Interest rate

Pop                                              5                                                  11%

Whistle                                         4                                                    7%

Loop                                             3                                                    8%

 

 

 

 

 (4)

 

Calculate the Present Value of each of the Projects below:

 

Project                            End of period                             Discount rate                          Single cash Flow

Pop                                              5                                                  11%                                     $10,000

Whistle                                        15                                                   7%                                         7,500

Loop                                            25                                                   8%                                         5,000





 

 

Income Statement Preparation:

 (5)

Prepare an Income Statement, in proper format, for 2015 for Johnson Medical Supplies (JMS) from the following information:

  • Salaries                          $70,000
  • Insurance                            $700
  • Utilities                           $3,500
  • Gas/Auto                         $5,750
  • Office Supplies               $7,250
  • Revenue                      $175,000
  • Rent                              $12,000
  • Maintenance                  $50,000 

 

(6) Calculate, define, and discuss the operating expenses, operating profit, and profit percentage.

Did JMS have a good year? Why/Why not? 

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