Horizontal, Vertical, and Ratio Analyses. Exhibits 4–29a and 4–29b show the statement of operations and balance sheet for Rocky Mountain Resort Hospital for 20X1 and 20X0. The debt principal payments each year for Rocky Mountain Resort are $500,000 for 20X1 and $1,300,000 for 20X0.

a. Perform horizontal and vertical analyses using the Statement of Operations.

b. Perform horizontal and vertical analyses using the Balance Sheet.

c. Compute all the selected ratios listed in Exhibit 4–16.

Evaluate the financial state of Rocky Mountain Resort, a 60-bed facility, using all of the above measures. Make the basis for the vertical analyses the year 20X0.