3.3. Consider this income statement: Green Valley Nursing Home, Inc. Statement of Income Year Ended December 31, 2020 Revenue: Net resident services revenue $3,053,258 Other revenue 106,146 Total revenues $3,159,404 Expenses Salaries and benefits Medical supplies and drugs Insurance and other Depreciation Interest $1,515,438 966,781 296,357 85,000 206,780 $3,070,356 $ 89,048 Total expenses Operating income : $ Operating income Income tax expense Net income 89,048 31,167 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? 3.4. Great Forks Hospital reported net income for 2020 of $2.4 million on total revenues of $30 million. Depreciation expense totaled $1 million. a. What were total expenses for 2020? & A 3.3. Consider this income statement: Green Valley Nursing Home, Inc. Statement of Income Year Ended December 31, 2020 Revenue: Net resident services revenue $3,053,258 Other revenue 106,146 Total revenues $3,159,404 Expenses Salaries and benefits Medical supplies and drugs Insurance and other Depreciation Interest $1,515,438 966,781 296,357 85,000 206,780 $3,070,356 $ 89,048 Total expenses Operating income : $ Operating income Income tax expense Net income 89,048 31,167 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? 3.4. Great Forks Hospital reported net income for 2020 of $2.4 million on total revenues of $30 million. Depreciation expense totaled $1 million. a. What were total expenses for 2020? & A