5.Incentive revenue consists of a.bonuses from a DME company to use their supplies b.payments from patients to
Question:
5. Incentive revenue consists of
a. bonuses from a DME company to use their supplies
b. payments from patients to use premium services
c. payments from insurance companies for meeting certain shared savings targets based on the payer contract
d. reductions of taxes due for paying withholding taxes early
For questions 6-8, use the below balance sheet
For the question 5 above, use the below income statement
XYZ Hospital Systems Inc | |
Operating Revenue | 20XX |
Patient Service Revenue | $ 36,000,000.00 |
Uncompensated Care & Bad Debts | $ (750,000.00) |
Incentive Revenue | $ 1,500,000.00 |
Other Revenue | $ 25,000.00 |
Net Revenue | $ 36,775,000.00 |
Expenses | |
Salaries and Wages | $ 18,000,000.00 |
Supplies | $ 3,000,000.00 |
Insurance | $ 2,500,000.00 |
Rents | $ 700,000.00 |
Depreciation | $ 400,000.00 |
Total Expenses | $ 24,600,000.00 |
Operating Income | $ 12,175,000.00 |
Non-operating income | |
Investment Income | $ 250,000.00 |
Net Income | $ 12,425,000.00 |
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield