Recent financial statements for the Heart Hospital are provided below: a. Perform a Du Pont analysis on
Question:
Recent financial statements for the Heart Hospital are provided below:
a. Perform a Du Pont analysis on the Heart Hospital. Assume that the peer group average ratios are as follows:
b. Calculate and interpret the following ratios for the Heart Hospital:
Transcribed Image Text:
The Heart Hospital Balance Sheet September 30, 2020 (in thousands) Current assets: Cash $14,202 Accounts receivable, net 5,918 Medical supplies inventory 1,211 Prepaid expenses and other current assets 1,429 Total current assets $22,760 Property, plant, and equipment, net $33,769 Other assets 901 Total assets Current liabilitics: Accounts payable Accrued compensation and benefits Other accrued liabilities Current portion of long-term debt Total current liabilitics Long-term debt Total liabilities Owners' equity Total liabilities and owners' equity $57,430 $ 1,910 2,543 1,843 2,064 $ 8,360 21,640 $30,000 $27,430 $57,430
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Related Book For
Gapenski's Healthcare Finance An Introduction To Accounting And Financial Management
ISBN: 9781640551862
7th Edition
Authors: Kristin L. Reiter, Paula H. Song
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