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Columbia Needycare is a clinic in south Florida that provides basic medical care for homeless and indigent patients. The clinic is a nonprofit organization that receives revenue from however much patients can pay at the time of their visit. These revenues totaled $5 million in 2017. The clinic's expenses, other than its depreciation, totaled 70% of its revenues. The depreciation expenses were $1 million. Other than depreciation, the clinic pays all of its expenses with cash because all of its revenues are collected in cash.
Question 1: Develop an income statement for Columbia Needycare for 2017.
Question 2: Calculate the total profit margin and net income for the clinic.
Question 3: Explain the difference between gross income and net income.
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