question 3.4

(continued from previous pu Expenses: $1,515,438 Salaries and benefits 966,781 Medical supplies and drugs Insurance and other 296,357 Depreciation 85,000 Interest 206,780 Total expenses $3,070,356 Operating income $ 89,048 Provision for income taxes 31,167 Net income $ 57,881 a. How does this income statement differ from the ones presented in Exhibit 3.1 and Problem 3.2? Why does Green Valley show a provision for income taxes while the other two income statements do not? c. What is Green Valley's total profit margin? How does this value compare with the values for Sunnyvale Clinic and BestCare? d. The before-tax profit margin for Green Valley is operating income divided by total revenues. Calculate Green Valley's before-tax profit margin. Why might this be a better measure of expense control when comparing an investor-owned business with a not- for-profit business? 3.4 Great Forks Hospital reported net income for 2015 of $2.4 million on total revenues of $30 million. Depreciation expense totaled $1 million. a. What were total expenses for 2015?IM b. What were total cash expenses for 2015? (Hint: Assume that all expenses, except depreciation, were cash expenses.) c. What was the hospital's 2015 cash flow? 3.5 Brandywine Homecare, a not-for-profit business, had revenues of $12 million in 2015. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $1.5 million All