Consider the following financial statement of Green Valley Nursing Home, Inc., a for-profit, long-term care facility
Green Valley Nursing Home, Inc., Statement of Incoming and Retaining Earnings, Year Ended December 31, 2015
							Revenue:
Net patient service revenue				$3,163,258
Other revenue				106,146
Total revenues				$3,269,404
Expenses:
Salaries and benefits				$1,515,438
Medical supplies and drugs				966,781
Insurance				296,357
Provision for bad debt				110,000
Depreciation				85,000
Interest				206,780
Total expenses				$3,180,356
Operating income				$89,048
Provision for income taxes				31,167
Net income				$57,881
Retained earnings, beginning of year				$199,961
Retained earnings, end of year				$257,842
Green Valley Nursing Home, Inc., Balance Sheet, December 31, 2015
Assets
Current Assets:
Cash				$105,737
Marketbale securities				200,000
Net patient accounts receivable				215,600
Supplies				87,655
Total current assets				$608,992
Property and equipment				$2,250,000
Less accumulated depreciation				356,000
Net property and equipment				$1,894,000
Total assets				$2,502,992
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable				$72,250
Accrued expenses				192,900
Notes payable				100,000
Current portion of long-term debt				80,000
Total current liabilities				$445,150
Long-term debt				$1,700,000
Shareholders' Equity:
Common stock, $10 par value				$100,000
Retained earnings				257,842
Total shareholders' equity				$357,842
Total liabilities and shareholders' equity				$2,502,992
a. Perform a Du Pont analysis on Green Valley. Assume that the industry average ratios are as follows:
							Total margin				3.50%
Total asset turnover				1.5
Equity multiplier				2.5
Return on equity (ROE)				13.10%
b. Calculate and enterpret the following ratios:
			Industry Average
Return on assets (ROA)				5.20%
Current ratio				2
Days cash on hand				22 days
Average collection period				19 days
Debt ratio				71%
Debt-to-equity ratio				2.5
Times interest earned (TIE) ratio				2.6
Fixed asset turnover ratio				1.4
c. Assume 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?