Question

Entries for the Pelham Clinic 2018 income statement are listed below in alphabetical order. Depreciation expense$75,000General & Admin expenses$50,000Interest income$10,000Net income????Nonoperating income$30,000Other operating revenue12,000Patient service revenue$500,000Provision for bad debts$20,000Purchased clinic services$100,000Salaries & benefits$125,000a.Reorder the data to reflect income statement format.b. What is Pelham Clinic’s 2018 net income?

Answer 1

Pelham Clinic 2018 Income statement
Operating revenue
Patient service revenue	500000
Less: provision of bad debt	20000
Net Patient service revenue		480000
Other operating revenue		12000
Net operating revenue		492000
Operating expenses
Purchased clinic services	100000
Salaries and benefits	125000
Depreciation expense	75000
General/Administrative expense	50000
Total expenses		350000
Operating income		142000
Other income
Interest income	10000
Non-operating income	30000	40000
Net income		$182000

Part B

Pelham Clinic’s 2018 net income = $182000