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 and drugs 966,781

Insurance and 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

a-How does this income statement differ from th ones presented in exhibit 3.1 and problem 3.2?

b-Why does Green valley show a provision for income taxes while the other two incomes statements did not?c)What is Green Valley's total profit margin?How does this value compare with the values for Sunnyvale Clinic and BestCare?

c)What is GreenValley's total profit margin?How does this value compare with the values for Sunnyvale Clinic and

d)The Before-taxprofit margin for greenValley 's before -tax profit margin.Why may this be a better measure of expense control when comparing an investor -owned business with a not-for-profit business?