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# Week 4 – Assignment 1: Calculate Total Expenses and Total Revenues PART 1 For this week’s assignment, you will analyze the Warren

Week 4 – Assignment 1: Calculate Total Expenses and Total Revenues

PART 1

For this week’s assignment, you will 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. You will also create a summary of what you found in error and why and upload an EXCEL spreadsheet showing the new correct income and expense tables.

Table 1

Warren Clinic 2020

 Revenue 2020 Depreciation expense 90000 (Less sales returns and allowances) 1000 General /Administrative Expense 70000 Interest Expense 20000 Investment Income 40000 Total Revenues Expenses Net Income (loss) (10000) Net Operating revenues 410000 Net patient Services Revenue 400000 Other Revenue 10000 Purchased service 90000 Salaries and benefits 150000 Total Expenses

Length: 1-page summary and a table provided under resources this week.

PART 2

## Week 4 – Assignment 2: Analyze Statement of Changes in Equity

Consider Southeast Home Care, which is a for-profit business. In 2020, its net income was \$1,500,000 and it distributed \$500,000 to owners in the form of dividends. Its beginning-of-year equity balance was \$12,000,000. Use this information and the income statement located in this week’s Assignment 1 resources to construct the business’s statement of changes in equity. What is the ending 2020 value of the business’s equity?

Length: Submit your answer on one EXCEL worksheet.

The completed assignment should address all of the assignment requirements, exhibit evidence of concept knowledge, and demonstrate thoughtful consideration of the content presented in the course.

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