1. Given the balance sheet and income statement on the accompanying spreadsheet, calculate the following ratios: 2016 2017 2018 2019 Current ratio Cash on hand Days in AIR Avg. payment period Equity financing Times interest earned Cash flow to debt Total asset turnover Current asset turnover Fixed asset turnover Total margin Return on Equity Return on Asset 2. Explain the calculated results, why did the ratio increase or decrease, for the following ratios: 1) Cash on Hand 2) Times Interest Earned 3) Total Asset Turnover Create four run charts for 1) profitability including total margin, ROE, and ROA, 2) turnover ratios including TAT, CAT, and FAT, 3) days in AR, and 4) debt to equity ratio. Comment on the change in the financial condition of this organization based on your analysis and provide specific recommendations to improve financial performance. 3. 4. Tanvon Health Inc Income Statement 2015 2017 2018 2019 $558, 318,572 $561,483,299 Operating Revenue Non operating Revenue Total Revenue $477,050,513 46 224 948 $523,275,461 $511 256 300 2246179 89 297 335 $647,615.908 99.058 209 $650, 551, SOB $574,502,470 Expenses Salaries and Wages Fringe Benefits Supplies Information Technology Depreciation Interest Other Total Expenses $198,457,516 48,054,237 48,175,810 40,419,807 18,188,560 51,297,583 28,264,456 170.716.699 $553,584,758 $222,614,230 48,064,237 37,871,054 40,419,807 18,188,560 51,297,583 28,264,456 132 302939 $579,022,876 $234,705,059 59,474,808 38,504,945 39,043,322 19,802,431 58,480,314 25,927 328 151.747 SOZ $627,685,714 $229,593,187 52,147,549 28,345,990 36,760,940 22,389,511 71.513,962 26,756, 370 167.229.922 $634,747,432 Profit $30,309,307 $4,520,406 $19.930, 194 $25,804,076 Balance Sheet 2015 2017 2018 2019 Cash Accounts Receivable Inventory Propert, Plant & Equipment Investments Total Assets $332,059,348 42,377,759 12,751,667 638,365,587 234.659.871 $1,250,224,232 $489,205,269 58,162,040 14,809,503 657,564,480 224 569.789 $1,444,311,081 $444,025,775 50,136,237 16,139,581 715,810,262 245.902.919 $1,472,015,774 $504,840, 109 42,072,486 13,330,327 734,536,383 357 589.744 $1,757,369,049 $434,884,278 Accounts Payable Long Term Debt Total abilities $434,884, 278 505.993 515 $941,852,794 $382,108,428 739 310 809 $1,121,419,237 $384,026,716 745 17.020 $1,129,193,736 $1,388,742,935 Equity $318,371,438 $322,891,844 $342.822.038 $368,626, 114 2 81% Profitability ratios Turnover ratios 1.20 120.00% 1.00 100.00% 0.80 80.00% 0.50 60.00% 0.40 40.00% 0.20 20.00% 0.00 0.00% Chart Area 120.0% 1.20 100.0% 100 80.0% 0.80 60.0% 0.60 40.0% 0.40 20.0% 0.20 0.0% 0.00
