Terri Settles is a registered dietitian (RD). She supervises five hospitals for Maramark Dining Services, the management company the hospitals have selected to operate their foodservice operations. Her company produces a monthly and annual income statement for each hospital.

1. Discuss five ways in which income statements can help Terri do her job better.

2. What would a hospital do with profits or surpluses made in the foodservice area?

3. What effect will profit or loss have on the ability of Terris company to continue to manage the food service operations for these hospitals?