Question
17.3 Riverside Memorial's primary financial statements are presented in exhibits 17.1, 17.2, and 17.3. a. Calculate Riverside's financial ratios for 2014. Assume that Riverside had
17.3 Riverside Memorial's primary financial statements are presented in exhibits 17.1, 17.2, and 17.3. a. Calculate Riverside's financial ratios for 2014. Assume that Riverside had $1,000,000 in lease payments and $1,400,000 in debt principal repayments in 2014. (Hint: Use the book discussion to identify the applicable ratios.)b. Interpret the ratios. Use both trend and comparative analyses. For the comparative analysis, assume that the industry data presented in the book are valid for both 2014 and 2015.
Calculate total margin; operating margin; return on assets; return on equity; days cash on hand; debt ratio; debt to equity; debt to capitalization; fixed asset turnover; total asset turnover; days in patient accounts receivable; average age of plant.
There is no need to focus on any other ratios.
Need a side by side trend analysis showing 2014 and 2015 ratios, as well as industry averages for each particular ratio.
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