exhibit 11.2

Profit 2016 2015 $ 150.118 2,000 $ 148,118 18,782 $123.565 1,800 $ 121.765 16,455 2,704 $140,924 3.079 $169.979 $126,223 20.568 $102,334 18,673 Operating revenues Patient service revenue Less: Provision for bad debts Net patient service revenue Premium revenue Other revenue Net operating revenues Expenses Salaries and benefits Supplies Insurance Lease Depreciation Interest Total expenses Operating income Nonoperating income Contributions Investment income Total nonoperating income Excess of revenues over expenses (net income) 4.518 3,189 6,405 5.329 $166,232 $ 3.747 3.710 2,603 5.798 3.476 $136,594 $ 4.330 243 198 3,870 $ 4,113 $ 7,860 3.678 $ 3.876 $ 8,206 Problem 2 Consider the following income statement: 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