1. Consider the financial statements for Park Ridge Homecare (a non-profit, home health organization) included in the Excel file Exam 3 Support.

The following are industry average ratios:

Total margin 5.20%

Total asset turnover 3.84 times

Equity multiplier 1.87 times

Return on equity 28.35%

Return on assets 14.50%

Current ratio 2.0 times

Days cash on hand 18.50 days

Average collection period 52 days

Debt ratio 55.0%

Debt-to-equity ratio 1.32

Times interest earned 2.20 times

Fixed asset turnover ratio 25.75 times

2. Calculate the 2019 and 2020 ratios for Park Ridge. Interpret each of the 2020 ratios, comparing them to 2019 performance and the industry average.
   • Return on assets
   • Current ratio
   • Days cash on hand
   • Average collection period
   • Debt ratio
   • Debt-to-equity ratio
   • Times interest earned ratio
   • Fixed asset turnover ratio