Assess the information presented in the medical group statement of revenues and expenses and calculate the operating margin for fiscal year 2006.

Assess the information presented in the medical group statement of revenues and expenses and calculate the operating margin for fiscal year 2006. FINANCIAL ACCOUNTING—STATEMENT OF REVENUE AND EXPENSESStatement of Revenue and Expenses for Group Practice for Year Ending June 30, 2006REVENUEPatient service revenue $9,345,600Less: Contractuals $3,364,200Total Net Service Revenue $5,981,400EXPENSESSalaries $2,628,500Fringe benefits $670,268Temporary labor $150,000Office supplies $78,000Mortgage payments $195,000Maintenance $32,900Minor equipment $47,500Insurance $36,200Interest $23,200Depreciation $178,000Miscellaneous $15,000Total Expenses $4,054,568Net Income (profit/loss) ExcessRevenue Over Expenses $1,926,833 32.21%

AnswerParticularsPatient Service RevenueLess ContractualTotal Net Service Revenue (A)Less Operating ExpensesSalariesFringe benefitsTemporary LabourOffice SuppliesMaintenanceMinor...