exhibit 11.2

Problem 1 Entries for the Boston Clinic 2018 income statement are listed below. Use the data to prepare a properly formatted income statement. Depreciation expense General/Administrative expenses Interest expense Nonoperating income Other operating revenue Patient service revenue Provision for bad debts Purchased clinic services Salaries and benefits $110,000 84,000 18,500 50,200 24,600 640,400 60,000 120.800 210,000 Rio Grande Nursing Home Inc. Statement of income Year Ended December 31, 2018 Revenue Resident services revenue Provision for bad debts Other revenue Total revenues $3,520,400 (120,300) 150,600 $3,550,700 Expenses Salaries and benefits Medical supplies and drugs Insurance and other Depreciation Interest Total expenses Operating income Income tax expense Net income $1,630,250 990,780 324,622 94,600 160,460 $3.200,712 $ 349,988 120,190 $ 229,798 a. How does this income statement differ from the one presented in exhibit 11.2? b. What is Rio Grande's total profit margin? c. How do you interpret and assess Rio Grande's total profit margin? Use exhibit 11.1, 2016 as the benchmark for the assessment. Problem 1 Entries for the Boston Clinic 2018 income statement are listed below. Use the data to prepare a properly formatted income statement. Depreciation expense General/Administrative expenses Interest expense Nonoperating income Other operating revenue Patient service revenue Provision for bad debts Purchased clinic services Salaries and benefits $110,000 84,000 18,500 50,200 24,600 640,400 60,000 120.800 210,000 Rio Grande Nursing Home Inc. Statement of income Year Ended December 31, 2018 Revenue Resident services revenue Provision for bad debts Other revenue Total revenues $3,520,400 (120,300) 150,600 $3,550,700 Expenses Salaries and benefits Medical supplies and drugs Insurance and other Depreciation Interest Total expenses Operating income Income tax expense Net income $1,630,250 990,780 324,622 94,600 160,460 $3.200,712 $ 349,988 120,190 $ 229,798 a. How does this income statement differ from the one presented in exhibit 11.2? b. What is Rio Grande's total profit margin? c. How do you interpret and assess Rio Grande's total profit margin? Use exhibit 11.1, 2016 as the benchmark for the assessment