Create and Interpret XXX's financial statement of cash flows for 2013. What information does it provide regarding
Question:
Create and Interpret XXX's financial statement of cash flows for 2013. What information does it provide regarding the HMO’s sources and uses of cash over the past year? (in millions)
Statement of operations 2012 2013
Premium Revenue $313.7 357.6
Interest income 2.4 3.5
Total Revenues $316.1 $361.1
Operating expenses:
Medical cost $263.0 $291.8
Selling & admin 36.8 43.6
Depreciation 4.7 5.0
Total operating expenses $304.5 $340.4
Net Income $11.6 $20.7
Balance Sheets
Cash $37.2 $27.2
Marketable Securities 42.7 60.9
Premiums Receivable 3.7 7.4
Total Current Assets $83.6 $95.5
Net fixed Assets 30.0 31.7
Total Assets $113.6 $127.2
Medical cost payable $44.8 $48.7
Accounts Payable/Accruals 15.4 17.3
Total Current Liabilities $60.2 $66.0
Long-term debt 17.1 4.2
Net assets (equity) 36.3 57.0
Total Liabilities & net assets $113.6 $127.2
Other data
Medical cost ratio 83.8% , 81.6%
Admin cost ratio 13.2% 13.6%
Total Comm. premium revenue $170.9 $205.6
Total Medicare Revenue $142.8 $152.0
Total physician service expense $125.6 $127.1
Total inpatient expense $80.8 $90.1
Total Other Medical Expense $56.6 $74,6
Expert Answer:
To create and interpret the cash flow statement for XXX HMO for the year 2013 we will follow the direct method approach to report cash flows from oper... View the full answer
College Accounting
ISBN: 978-1111528126
11th edition
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille
