er the following income statement: 3.2 Consider the foll BestCare HMO Statement of Operations Year Ended June 30, 2015 (in thousands) Revenue: Premiums earned Coinsurance Interest and other income Total revenues $26,682 1,689 242 $28,613 Expenses: Salaries and benefits Medical supplies and drugs Insurance Depreciation Interest Total expenses Net income $15,154 7,507 3,963 367 385 $27,376 $ 1,237 1. How does this income statement differ from the one presented in Exhibit 3.1? d BestCare spend $367,000 on new fixed assets during fiscal year 2015? If not, what is the economic rationale behind its reported depreciation expense? at is BestCare's total profit margin? How can it be interpreted? Consider this income statement: ne statement are listed below 3.1 Entries for the Warren Clinic 2015 income in alphabetical order. Reorder the data in proper Depreciation expense General/administrative expenses Interest expense Investment income Net income Net operating revenues Other revenue Patient service revenue Provision for bad debts Purchased clinic services Salaries and benefits Total expenses $ 90,000 70,000 20,000 40,000 30,000 410,000 10,000 440,000 40,000 90,000 150,000 420,000