Question

I'm second guessing myself. Can someone verify my 4 answers are correct at the bottom?

Using the data below create an Income Statement for XYZ Hospital
2018 Fiscal Year Data for XYZ Hospital:
Depreciation	$448,350.00
Insurance expense	$373,030.00
Interest expense	$280,450.00
Investment income	$270,900.00
Repairs and maintenance	$222,740.00
Patient services revenue	$10,725,260.00
Rent expense	$299,250.00
Salaries and benefits	$6,735,610.00
Supplies	$1,025,625.00
Utilities	$227,500.00
** use the space below to create the Income Statement:
2018 XYZ Hospital Income statement
Revenue
Patient services revenue	$10,725,260.00
Total Operating Revenue	$10,725,260.00
Operating Expenses
Depreciation	$448,350.00
Interest Expense	$280,450.00
Repairs and maintenance	$222,740.00
Salaries and benefits	$6,735,610.00
Utilities	$227,500.00
Rent Expense	$299,250.00
Supplies	$1,025,625.00
Insurance Expense	$373,030.00
Total Operating Expenses	$9,612,555.00
Nonopertaing Gains	$270,900.00
Operating income	$1,112,705.00
Based upon your Income Statement, answer the following in the space provided:
What is the net patient revenue?	$1,112,705.00
What are the total expenses for the year?	$9,612,555.00
What is the hospital's bottom line for the year?	$1,112,705.00
What % of net patient revenue is spent on salaries & benefits?	63%

Answer 1

The net patient revenue = Patient services revenue - bad debts - contractual adjustments - uncompensated care - discounts = Patient services revenue = $10,725,260.00

All other terms in the equation above are zero.

Hence, The net patient revenue = $10,725,260.00

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Total expenses for the year = $ 9,612,555.00 (your answer is correct)

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Bottomline = Revenue - Expenses + investment income = 10,725,260 - 9,612,555 + 270,900.00 = $ 1,383,605

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% of net patient revenue spent on salaries & benefits = Salaries & benefits /  Net patient service revenue

= 6,735,610 / 10,725,260 = 62.80%