Consider this income statement: Green Valley Nursing Home, Inc. Statement of Income Year Ended December 31,2011

Revenue:

Net patient service revenue $3,163,258

Other revenue 106,146

Total revenues $3,269,404

Expenses:

Salaries and benefits $1,515,438

Medical supplies and drugs 966,781

Insurance and other 296,357

Provision for bad debts 110,000

Depreciation 85,000

Interest 206,780

Total expenses $3,180,356

Operating income $89,048

Provision for income taxes 31,167

Net income $57,881

1. WHAT IS THE PRIMARY DIFFERENCE

2. WHAT TYPE OF ENTITY IS GREEN VALLEY?

3. WHAT IS GREEN VALLEY'S TOTAL PROFIT MARGIN

4. HOW DOES IT COMPARE TO COMPETITORS

5. WHAT IS GREEN VALLEY'S BEFORE TAX PROFIT MARGIN

** PLEASE SEE COMPETITOR INCOME STATEMENT BELOW*********

Bestcare HMO statement of operations Year ended june 30,2011 ( in thousands)

Revenue

premiums earned 26,682

coinsurance 1,689

interest and other income 242

total revenues 28,613

Expenses

salaries and benefits 15,154

medical supplies and drugs 7,507

insurance 3,963

provision for bad debts 19

depreciation 367

interest 385

total expenses 27,395

net income 1,218