Consider the following financial statements for Green Valley Nursing Home, Inc., a for-profit, long-term care facility

a. Perform a Du Pont analysis on Green Valley. Assume that the industry average ratios are as follows:

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Revenue: Green Valley Nursing Home, Inc. Statement of Income and Retained Earnings Year Ended December 31, 2004 Net patient service revenue Other revenue Total revenues Expenses: Salaries and benefits Medical supplies and drugs Insurance and other Provision for bad debts Depreciation Interest Total expenses Operating income Provision for income taxes $ 3,163,258 106,146 $ 3,269,404 $ 1,515,438 966,781 296,357 110,000 85,000 206,780 $ 3,180,356 $ 89,048 31,167 $ 57,881 Retained earnings, beginning of year $ 199,961 Retained earnings, end of year $ 257,842 Net income