Calculate Total Expenses and Total Revenues

To properly format the income statement and calculate the total revenues and total expenses, we need to reorder the data and categorize them correctly. Here’s how the data should be organized:

Revenue:

• Net patient Services Revenue: $400,000
• Other Revenue: $10,000
• Investment Income: $40,000
• Total Revenues

Expenses:

• Salaries and benefits: $150,000
• Purchased service: $90,000
• Depreciation expense: $90,000
• General/Administrative Expense: $70,000
• Interest Expense: $20,000
• Less: Sales returns and allowances: ($1,000)
• Total Expenses
• Net Income (loss): ($10,000)
• Net Operating revenues: $410,000

Now, let’s calculate the total revenues and total expenses:

Total Revenues = Net patient Services Revenue + Other Revenue + Investment Income = $400,000 + $10,000 + $40,000 = $450,000

Total Expenses = Salaries and benefits + Purchased service + Depreciation expense + General/Administrative Expense + Interest Expense – Less: Sales returns and allowances = $150,000 + $90,000 + $90,000 + $70,000 + $20,000 – $1,000 = $419,000

So, the corrected values for total revenues and total expenses are:

• Total Revenues: $450,000
• Total Expenses: $419,000

Week 4 Assignment 1: Calculate Total Expenses and Total Revenues (5 Points)

For this week’s assignment, you will need to analyze the Warren Clinic’s 2020 income statement, correctly identify the errors in the Revenue and Expense Tables, reorder the data, place the revenues and expenses in the proper place, and then, recalculate each table. Entries for the Warren Clinic’s 2020 income statement are listed below in alphabetical order and you must reorder the data in the proper format.

Table 1