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3 years ago

Here are the 2015 revenues for the Wendover Group Practice Association for four different budgets (in thousands of dollars):

Business

2 answers:

erastova [34]3 years ago

8 0

Answer: The answer is provided below

Explanation:

a). The revenue here shows that

Wendover's patients were capitated. The is because the actual revenue figures were assumed to be $180, but it

later came to $300 which means that the revenue increased.

The reason is that a capitated patient provides fixed payment a year, while a fee for service client pays per usage. With this explanation, it can be concluded that majority of Wendover's patients are fee for service because the difference between static results and the actual results is very high.

) 1. Revenue variance

= Actual Revenues - Static budget

= $ 300 - $ 425

= - $125

2. Volume variance

= Flexible Revenue - Static Budget

= $ 200 - $ 425

= - $ 225

3. Price Variance

= Actual Revenues - Flexible Revenues

=$300 - $200

= $100

4. Enrollment variance

= Flexible Revenues - Static Budget

= $ 180 - $ 425

= - $ 245

5. Utilization variance

= Flexible Revenue- Flexible Budget

= $ 200 - $ 180

= $ 20

Mariana [72]3 years ago

3 0

Answer:

Kindly check Explanation

Explanation:

The difference between capita tes and fee-for-service is how payment is made, In capitates, a fixed annual amount is paid whereby In fee-for-service, payment is made separately for each service demanded. Thus it could be concluded from the data they the patients are fee-for - service due to the difference in the static and actual figure provided.

Given the following :

Static Budget - $425

Flexible (Enrollment/ Utilization) -$200

Budget Flexible (Enrollment) Budget -$180

Actual Results - $300

Revenue variance = (Actual Revenues - Static Revenue)

Revenue variance = ($300-$425) = -$125 (Unfavorable)

This shows that the Wendover have less patients who use the services.

Volume variance = (Flexible Revenues (enrollment and utilization) – Static Revenues)

Volume variance = ($200 – $425) = -$225

Price variance = (Actual Revenues – Flexible Revenue)

Price variance = ($300 - $200)

Price variance = $100 F

Price variance is favorable which means service charge is high.

Enrollment variance = (Flexible Revenues (enrollment) – Static Revenue)

Enrollment variance = $180 – $425 = -$245

Utilization variance =Flexible revenues (enrollment/utilization) - Budget Flexible (Enrollment) Budget

$200 - $180 = $20

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On January 1, 2016, Hackman Corporation issued $1,400,000 face value 12% bonds dated January 1, 2016, for $1,423,060. The bonds

krok68 [10]

Answer:

(a) Bond issuance:

Debit Cash $1,423,060

Credit Bonds payable $1,400,000

Credit Premium on bond payable $23,060

(To record bond issuance)

(b) June 20 interest payment

Debit Interest expense (balancing figure) $81,694

Debit Premium on bond payable $2,306

Credit Cash $84,000

(To record first interest payment - June 30)

(c) December 31 interest payment

Debit Interest expense (balancing figure) $81,694

Debit Premium on bond payable $2,306

Credit Cash $84,000

(To record first interest payment - December 31 )

Explanation:

A bond is a long-term promissory note issued by a company in order to borrow from investors to fund its business operations.

Calculation of the interest expense:

Premium on bonds payable (balancing figure) = $23,060

Number of periods = 5 years x 2 = 10 periods

Amortization of premium on bond payable = $23,060 / 10 periods = $2,306

Calculation of the cash proceed:

Cash = Face value of bond x contractual interest x Time period

Cash = $1,400,000 x 12% x 6 / 12 = $84,000 (see the journals above)

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4 years ago

5. Todd has his home and personal property insured under a Homeowners 3 (special form) policy. The dwelling is insured for $120,

Fantom [35]

Answer:

Explanation:

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b). The damage of window of the parlor will be made sure about under Part A course of action. The cash estimation of the damages is $400. From this time forward, the dollar proportion of mishap payable is $400.

c). The damages on account of impact of water radiator will be made sure about under Part C, singular property hurt. The most outrageous proportion of hardship will be half of inclusion A. The most extraordinary proportion of consideration will be $60,000 (half of $120,000). In any case, the genuine cash estimation of the incident is $2,000. In this way, the dollar proportion of setback will be $2,000

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4 years ago

Read 2 more answers

Monica spent a lot of time preparing for her interview, but the hiring manager is not asking any of the questions she practiced.

Vinil7 [7]

A) Be flexible and adjust to different situations

This should be the answer as she needs to be flexible and adjust to different situations in situations that she does not expect. She prepared for the interview but the hiring manager is not asking any of the questions she practiced which means that she has to be more flexible and answer the rest of the questions in the interview as best as possible by adjusting to the situation.

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3 years ago

The price of compact fluorescent light bulbs fell because of improvements in production technology. As a result, the demand for

eimsori [14]

Answer:

c. The statement is false because the demand for incandescent light bulbs would increase as the price of compact fluor. light bulbs fell.

Explanation:

If improvements in production technology reduce the price of incadescent light bulbs, the normal thing that would happen is that demand for this good would increase, because now people will be able to buy the good at a lower price.

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4 years ago

Joe operates a business that locates and purchases specialized assets for clients, among other activities. Joe uses the accrual

babunello [35]

Answer: Please refer to Explanation

Explanation:

a. No Effect on Taxable Income.

First off Joe's income is only dependent on if the test is successful. Even if it were, the test would only be conducted in year 1 March not in year 0 which is the focus of this question. Taxes are only paid when cash is received.

b. No Effect on Taxable Income.

Had there been a business discussion, Joe would have been able to claim a 50% deduction in Tax. However since there was none, there is no effect on Tax.

c. No effect on Taxable Income

The insurance is not tax deductible.

d. $12,750 in taxable income.

Even Joe believes that $2,750 of income might not be collected, he cannot deduct this from taxes until it actually happens therefore his increase in income is $12,750.

e. $2,250 reduction in taxable income

The $6,750 was paid for 3 months. Joe uses Accrual accounting however meaning that expenses have to be recorded for the period they are incurred. $2,250 was incurred for December and so that is the amount that will be deducted as an expense for the year.

f. $1,600 reduction in Taxable income.

If the representative brings back receipts that are in order, Joe can be able to reimburse her for $1,600 in expenses. This includes $550 for airfare, $600 for lodging and for food and entertainment, the maximum he can claim as deductible in tax is 50% of each which means $250 for meals and $200 for entertainment. Adding all that up will give $1,600.

g. $139.15 reduction in Taxable income

Joe drove 96 miles to and fro the factory to his house. This is not tax deductible and considered personal. He however drove 245 miles visiting company sites. This is tax deductible.

The standard rate for 2020 according to the IRS is 57.5 cents per mile so 245 * 57.5 cents per mile will give $139.15.

h. $345 reduction in taxable income

Joe spent $175 to attend to symposium. He also paid $95 in taxi fare to get to the symposium. He ate meals worth $150 during the symposium not which 50% is deductible. 50% being $75. Adding all these together is,

= 175 + 95 + 75

= $345.

This is the taxable reduction.

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3 years ago