The photo below are the requirements and questions needed to be answered.The photos are what go with these questions

A. How does the income statement differ from the 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 income statements do not? c. What is Green Valley's total profit margin? How does this value compare with the values for Sunnyvale 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? Consider this income statement Green Valley Nursing Home, Inc. Statement of Income Year Ended December 31, 2015 Revenue: Patient service revenue $3,163,258 Less provision for bad debts (110,000) Net patient service revenue $3,053,258 Other revenue 106,146 Net operating revenues $3,159,404 (continued) (continued from previous page] Expenses: Salaries and benefits $1,515,438 Medical supplies and drugs 966,781 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 Income Statement from Exhibit 3.1 2015 2014 $ 150,118 2.000 $ 148,118 18,782 3.079 $ 169,979 $123.565 1,800 $121.765 16,455 2,704 $140,924 EXHIBIT 3.1 Sunnyvale Clinic: Statements of Operations, Years Ended December 31, 2015 and 2014 (in thousands) 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 Net income $ 126,223 20,568 4.518 3,189 6,405 5.329 $ 166,232 $ 3.747 $102,334 18,653 3.710 2,603 5.798 3.476 $136,594 $ 4.330 $ $ $ 243 3.870 4,113 7,860 $ 198 3.678 $ 3.876 $ 8,206 Income Statement from Exhibit 3.2 EXHIBIT 3.2 Sunnyvale Clinic: Condensed Income Statements Under Alternative Tax Assumptions, Year Ended December 31, 2015 in thousands) Not-for-Profit For-Profit A For-Profit B For-Profit C (Tax rate = 0%) (Tax rate = 20%) (Tax rate = 40%) (Tax rate = 40%) $174,092 $174,092 $174,092 $174,092 $159,827 Total revenues Expenses: All except depreciation Depreciation Total expenses Taxable income Taxes Net income 0 $159,827 6,405 $166,232 $ 7,860 $159,827 6,405 $166,232 $ 7,860 1,572 $ 6,288 $159,827 6,405 $166,232 $ 7,860 3,144 $ 4.716 $159,827 $ 14,265 5,706 $ 8,552 $ 7,860 $ 8,559 Cash flow $ 14,265 $ 12,693 $ 11,121 (NI + depreciation) Note: Total revenues = Net operating revenues + Total nonoperating income. Ni (net income). A. How does the income statement differ from the 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 income statements do not? c. What is Green Valley's total profit margin? How does this value compare with the values for Sunnyvale 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? Consider this income statement Green Valley Nursing Home, Inc. Statement of Income Year Ended December 31, 2015 Revenue: Patient service revenue $3,163,258 Less provision for bad debts (110,000) Net patient service revenue $3,053,258 Other revenue 106,146 Net operating revenues $3,159,404 (continued) (continued from previous page] Expenses: Salaries and benefits $1,515,438 Medical supplies and drugs 966,781 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 Income Statement from Exhibit 3.1 2015 2014 $ 150,118 2.000 $ 148,118 18,782 3.079 $ 169,979 $123.565 1,800 $121.765 16,455 2,704 $140,924 EXHIBIT 3.1 Sunnyvale Clinic: Statements of Operations, Years Ended December 31, 2015 and 2014 (in thousands) 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 Net income $ 126,223 20,568 4.518 3,189 6,405 5.329 $ 166,232 $ 3.747 $102,334 18,653 3.710 2,603 5.798 3.476 $136,594 $ 4.330 $ $ $ 243 3.870 4,113 7,860 $ 198 3.678 $ 3.876 $ 8,206 Income Statement from Exhibit 3.2 EXHIBIT 3.2 Sunnyvale Clinic: Condensed Income Statements Under Alternative Tax Assumptions, Year Ended December 31, 2015 in thousands) Not-for-Profit For-Profit A For-Profit B For-Profit C (Tax rate = 0%) (Tax rate = 20%) (Tax rate = 40%) (Tax rate = 40%) $174,092 $174,092 $174,092 $174,092 $159,827 Total revenues Expenses: All except depreciation Depreciation Total expenses Taxable income Taxes Net income 0 $159,827 6,405 $166,232 $ 7,860 $159,827 6,405 $166,232 $ 7,860 1,572 $ 6,288 $159,827 6,405 $166,232 $ 7,860 3,144 $ 4.716 $159,827 $ 14,265 5,706 $ 8,552 $ 7,860 $ 8,559 Cash flow $ 14,265 $ 12,693 $ 11,121 (NI + depreciation) Note: Total revenues = Net operating revenues + Total nonoperating income. Ni (net income)