3.3. Consider this income statement: Green Valley Nursing Home, Inc. Statement of Income Year Ended December 31, 2020 Revenue: Net resident services revenue Other revenue Total revenues Expenses: Salaries and benefits Medical supplies and drugs Insurance and other $3,053,258 106,146 $3,159,404 $1,515,438 966,781 296,357 85,000 Depreciation Interest Total expenses 206,780 $3,070,356 Operating income $ 89,048 Income tax expense 31,167 Net income $ 57,881 a. How does this income statement differ from the ones presented in exhibit 3.1 and problem 3.2? b. Why does Green Valley show an income tax expense, while the other two income statements do not? c. What is Green Valley's total profit margin? How does this value compare with the values for Sunnyvale Clinic and BestCare? d. The before-tax profit margin for Green Valley is operating income divided by total revenues. Calculate Green Valley's before-tax profit margin. Why might this be a better measure of expense control when comparing an investor-owned business with a not-for-profit business? 3.2. Consider the following income statement: Revenue: BestCare HMO Statement of Operations Year Ended June 30, 2020 (in thousands) Healthcare premiums $26,682 Fees and other revenue 1,689 Net investment income 242 Total revenues $28,613 Benefits and expenses: Healthcare costs $15,154 Operating expenses: General and administrative expenses 7,874 Selling expenses 3,963 Interest expense 385 Total benefits and expenses $27,376 Net income $ 1,237 3.1. Entries for the Warren Clinic's 2020 income statement are listed below in alphabetical order. Reorder the data in the proper format. Depreciation expense General/administrative expenses Interest expense $ 90,000 70,000 20,000 Investment income 40,000 Net income 30,000 Net operating income (loss) (10,000) Net operating revenues 410,000 Net patient service revenue 400,000 Other revenue 10,000 Purchased services 90,000 Salaries and benefits 150,000 Total expenses 420,000