What is green valley total profit margin

Assignment Help Finance Basics

Reference no: EM131926350

Question: Consider this income statement: Green Valley Nursing Home Statement of Income Year Ended 12/31/15 Revenue:

Patient Service revenue $3,163,258

Less Provision for bad debt (110,000)

Net Patient service revenue $3,053,258

Other Revenue 106,146

Net Operating Revenues $3,159,404

Expenses:

Salaries and Benefits $1,525,438

Medical Supplies and drugs 966,781

Insuranace 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. Why does Green Valley show a provision for income taxes while the other two income statements do not?

B. What is Green Valley's total profit margin? How does this value compare with the values for Sunnyvale Clinic and BestCare?

C. 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 busincess with a not-for-profit business?

Reference no: EM131926350

Questions Cloud

What is the focal length of the lens : The projector creates an image 600 cm tall 12 m from the lens. The object is 12 cm tall. What is the distance from the lens to the object?

Describe the importance of international capital structure : Describe the importance of international capital structure. What risks can you identify when working with cash, credit and inventory management?

What pitching rotation should greg set : What pitching rotation should Greg set to provide the highest sum of the probabilities of winning each game for his team?

What is the range of profits for this strategy : what is the range of profits for this strateg

What is green valley total profit margin : What is Green Valley's total profit margin? How does this value compare with the values for Sunnyvale Clinic and BestCare?

What is your payment if the six-month libor : hat is your payment if the 6-month LIBOR is .28% in two months?

What is the speed of the railcar when the car leaves : (a) What is the speed of the railcar when the car leaves?

List the pros and cons of investing in nigeria : List the pros and cons of investing in Nigeria. Under what circumstances would you recommend investing?

Formulate model that will permit company to meet its demand : Formulate a model that will permit the company to meet its demand at the lowest possible cost. What is the new transportation plan, and what is the new cost?

User Account

All Pages