Consider the following financial statements for Green Valley Nursing Home, Inc., a for-profit, long-term care facility:

2 PROBLEM 5 3 Consider the following financial statements for Gre Consider the following financial statements for Green Valley Nursing Home, Inc., a for-profit, 4 long term care facility: Green Valley Nursing Home, Inc. Statement of Income and Retained Earnings Year Ended December 31,2XXX 9 Revenue: 10 Net patient service revenue 11 Other revenue 12 Total revenues 13 Expenses: 14 Salaries and benefits 15 Medical supplies and drugs 16 Insurance and other 17 Rent 18 Depreciation 19 Interest 20Total expenses 21 Operating income 22 Provision for income taxes 23 Net income 24 Retained earnings, beginning of year 25 Retained earnings, end of year S3,163,258 S106,146 S3,269,404 S1,515,438 S966,781 $296,357 $110,000 $85,000 $206,780 $3.180,356 $89,048 $31,167 $57,881 199,961 S257,842 27 Green Valley Nursing Home, Inc Balance Sheet Year Ended December 31,2XXX 30 Assets 31 Current assets: 32 Cash 33 Marketable securities 34 Net patient accounts receivable 35 Supplies 36 Total current assets 37 Property and equipment 38 Less accumulated depreciation 39 Net property and equipment 40 Total assets S105,737 S200,000 S215,600 $87.655 S608,992 S2,250,000 S356,000 S1,894,000 $2,502,992 42 Liabilities and Shareholders' Equity 43 Current liabilities: 44 Accounts pavable 45 Accrued expenses 46 Notes payable 47 Current portion of long-term debt 48 Total current liabilities 49 Long-term debt 50 Shareholders equity: 51 Common stock, S10 par value 52 Retained earnings 53 Total shareholders' equity 54 Total liabilities and shareholders' equity S72,250 S192,900 S100,000 S80,000 S445,150 S1.700,000 S100,000 S257,842 S357.842 $2.502,992