Horizontal, Vertical, and Ratio Analyses. Exhibits 4–30a and 4–30b show the Balance Sheet and Statement of Operations for 660-bed Williamson Academic Medical Center for the years 20X0 and 20X1.

a. Perform full horizontal and vertical analyses on the Balance Sheet.

b. Perform full horizontal and vertical analyses on the Statement of Operations.

c. Calculate every ratio described in the chapter for both years as compared to the standard. (Note: assume that principal payments each year are for

$500,000.)

Discuss Williamson’s current financial position and future outlook based upon these results. Make the basis for the vertical analyses the year 20X0.