A cancer institute is considering an expansion opportunity but must first fully analyze the organizations financial health before moving forward with the expansion. The organization operates 365 days per year, generates $69,000,000 in annual revenues and currently utilizes an all-equity approach to financing. Earnings before interest and taxes is $13,000,000 and the organization holds $17,000,000 in assets. As a newly hired financial analyst, it is now your responsibility to perform the necessary calculations and provide a final report to the executive team.

Prepare the institutes financial statements, comparing its current all-equity financing approach to a possible 65% debt financing approach. Assume an interest rate of 9% and a tax rate of 33% for your calculations. Create: a) the balance sheet, b) the income statement and c) calculate Return to Investors and Return on Equity. d) Which financing option has the best return on investment?

Please show your work so I can ensure that I am solving this problem correctly.