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Analyze the financial statements of HealthCorp for the years ended December 31, 2023, 2022, and 2021, and address the following: HealthCorp Comparative Income Statements for
Analyze the financial statements of HealthCorp for the years ended December 31, 2023, 2022, and 2021, and address the following:
HealthCorp Comparative Income Statements for Years Ended December 31, 2023, 2022, and 2021:
- Sales: 2023: $1,500,000, 2022: $1,200,000, 2021: $900,000
- Cost of Goods Sold: 2023: $700,000, 2022: $600,000, 2021: $450,000
- Gross Profit: 2023: $800,000, 2022: $600,000, 2021: $450,000
- Operating Expenses: 2023: $250,000, 2022: $200,000, 2021: $150,000
- Net Income: 2023: $400,000, 2022: $300,000, 2021: $250,000
HealthCorp Comparative Balance Sheets as of December 31, 2023, 2022, and 2021:
- Total Assets: 2023: $2,000,000, 2022: $1,600,000, 2021: $1,200,000
- Total Liabilities: 2023: $800,000, 2022: $600,000, 2021: $500,000
- Shareholders' Equity: 2023: $1,200,000, 2022: $1,000,000, 2021: $700,000
Requirements:
- Calculate the gross profit margin for each year.
- Determine the net profit margin for each year.
- Compute the return on assets (ROA) for each year.
- Calculate the debt-to-equity ratio for each year.
- Discuss the financial health of the company based on these metrics.
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