a.) In this income statement the operating expenses are included as opposed to the other two in which there is no operating income.
b.) One of the income statement reflects a non-profit organization and the other a for profit business. You can tell because the for profit business must account for how much they think they will pay in income taxes that year, hence, one statement has a provision for income taxes.
c.) Green Valleys total profit margin is the net income/revenue. Therefore the answer is 57,881/3,269,404 = 0.0177. This compared to Best Care of 0.0456 shows that their profit margin is not as high as Best Care.
d.) Before tax profit margin = 0.0272. I feel that this would be better because it literally measures the expense associated with …show more content…
The term net revenue is the gross sales minus the cost of sales, including cost of goods sold. Gross revenues is, simply put, your revenue from sales before subtracting the cost.
b. The difference between patient service revenue and other forms of revenue is that the patient service revenue is generated specifically from patients and the service that is provided to them. Other revenues include things like interest, rent and donations.
c. The difference is that charity care is when the patient does not have the ability to pay whereas bad debt is after the patient has been marked as having a way to pay and choosing not to.
3.8
a. Net income represents the bottom line, or, the amount of profit that remains after accounting for all expenditures. Operating income is the amount of revenue left over after accounting for all the expenses necessary to keep the business running.
b. Net income is called the bottom line because if reflects the amount of profit tha3t remains after accounting for all expenditures.
c. Net income is the total revenue- total expenses whereas the cash flow is the net income plus depreciation. In the case where there is no depreciation the two are the
b.) One of the income statement reflects a non-profit organization and the other a for profit business. You can tell because the for profit business must account for how much they think they will pay in income taxes that year, hence, one statement has a provision for income taxes.
c.) Green Valleys total profit margin is the net income/revenue. Therefore the answer is 57,881/3,269,404 = 0.0177. This compared to Best Care of 0.0456 shows that their profit margin is not as high as Best Care.
d.) Before tax profit margin = 0.0272. I feel that this would be better because it literally measures the expense associated with …show more content…
The term net revenue is the gross sales minus the cost of sales, including cost of goods sold. Gross revenues is, simply put, your revenue from sales before subtracting the cost.
b. The difference between patient service revenue and other forms of revenue is that the patient service revenue is generated specifically from patients and the service that is provided to them. Other revenues include things like interest, rent and donations.
c. The difference is that charity care is when the patient does not have the ability to pay whereas bad debt is after the patient has been marked as having a way to pay and choosing not to.
3.8
a. Net income represents the bottom line, or, the amount of profit that remains after accounting for all expenditures. Operating income is the amount of revenue left over after accounting for all the expenses necessary to keep the business running.
b. Net income is called the bottom line because if reflects the amount of profit tha3t remains after accounting for all expenditures.
c. Net income is the total revenue- total expenses whereas the cash flow is the net income plus depreciation. In the case where there is no depreciation the two are the