Consider the following income statement:

a. How does this income statement differ from the one presented in Exhibit 3.1?
b. Did Best Care spend $367,000 on new fixed assets during fiscal year 2011? If not, what is the economic rationale behind its reported depreciation expense?
c. Explain the provision for bad debts entry.
d. What is BestCare's total profit margin? How can it be interpreted?

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BestCare HMO Statement of Operations Year Ended June 30, 2011 (in thousands) Revenue: $26,682 Premiums earned Coinsurance 1,689 Interestand otherincome 242 $28,613 Total revenues Expenses: $15,154 Salaries and benefits Medical supplies and drugs 7,507 Insurance 3,963 Provision for bad debts 19 367 Depreciation Interest 385 Total expenses $27,395 $1,218 Net income