Consider the following income statement:

a. How does this income statement differ from the one presented in exhibit 3.1?

Exhibit 3.1

b. What is BestCare’s total profit margin? How can it beinterpreted?

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Revenue: BestCare HMO Statement of Operations Year Ended June 30, 2020 (in thousands) Healthcare premiums $26,682 Fees and other revenue 1,689 Net investment income 242 Total revenues $28,613 Benefits and expenses: Healthcare costs $15,154 Operating expenses: General and administrative expenses 7,874 Selling expenses 3,963 Interest expense 385 Total benefits and expenses Net income $27,376 $ 1,237