Interpret statement of operations and balance sheet. An explanation of each account. For example, the...
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Finance
Interpret statement of operations and balance sheet. An explanation of each account. For example, the company is repaying its debt at an increasing speed year after year. Is it good? Is it bad? Why did it increase or decrease?
Statements of Operations:
(Millions of Dollars)
2016
2017
Premium revenue
$313.7
$357.6
Interest revenue
2.4
3.5
Total revenues
$316.1
$361.1
Operating expenses:
Medical costs
$263.0
$291.8
Selling and administrative
36.8
43.6
Depreciation
4.7
5.0
Total operating expenses
$304.5
$340.4
Net income
$11.6
$20.7
Balance Sheets:
(Millions of Dollars)
2016
2017
Cash
$37.2
$27.2
Short-term investments
42.7
60.9
Premiums receivable
3.7
7.4
Total current assets
$83.6
$95.5
Net plant and equipment
30.0
31.7
Total assets
$113.6
$127.2
Medical costs 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 claims
$113.6
$127.2
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