Consider the following fancial statement for Grun Valley Norsiap Hon, Inc., a for-profit, loup-tera care facility: 00100 Grma Valley Nursh Home, Iac. Statument of Income and Retained Earnings Year Ended December 31, 2XXX RETIC Net patient service revenue $3,163,268 Other TUTORE $105,146 Total revenues $3,269,404 Expenses: Salaries and benefits $1,616,438 Medical supplies and drugs $966,781 IRJUTARCR and other $296,357 Kent $110,000 Depreciation $85,000 Interest $206,780 Total espesses $3,180,356 Operating income 339,048 Prevision for income taxes O 1.167 Set income $57,881 Retained ursing, beginning of year $199,961 Retained earnings, ead of year $257,342 Green Valley Nursing Home, Iac. Balance Sheet Year Ended December 31, 2XXX Assets Correst assets: Cash Marketable securities Net patient accouets receivable Supplies Total correst assets Tropam Le casted depreciatice Serpoperty designet $105,737 $200,000 $215,600 $17.655 5605992 $2,250,000 5356.000 51.591006 571 $1 700.000 Loup-term debe Sharebolders' aqulty: Common stock, $10 par value Retaland eraiap Total shareholders' equity Total liabilities and shareholders' equity $100,000 $257,842 $367,842 $2,602,992 1.5 UDUDUDDUWUL 1. Perform 1 Du Pont analysis on Green Valley. Assume that the Industry Average ratios are as follows: Total margin 3.596 Total asset turnover Equity multiplier 2.5 Return on equity (ROE) 13.146 d. Calculate and interpret the following ratios: Industry averare Return on assets (ROA) 5.246 Current ratio 2.0 Days cash on hand Average collection period 19 days Debt ratio 7196 Debt-to-equity ratio Times interest earned (TIE) ratio Fixed asset turnover ratio C. Asume that there are 10,000 shares of Green Valley's stock outstanding and that some recently sold for $45 per share. - What is the firm's price / earnings ratio? - What is its market/ book ratio? 22 daye