11.3 (Please No excel spreadsheets, please write out the numbers). Thanks.

Consider this income statement:

Green Valley Nursing Home Inc. Statement of Income, Year Ended December 31, 2016

Revenue

Resident services revenue $3,163,258

Provision for bad debts (110,000)

Other revenue 106,146

Total revenues$3,159,404

Expenses

Salaries and benefits $ 1,515,438

Medical supplies and drugs966,781

Insurance and other 296,357

Depreciation 85,000

Interest 206,780

Total expenses $3,070,356

Operating income $ 89,048

Income tax expense 31,167

Net income $ 57,881

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?