Exhibits, 13.1, 13.2 & 13. 3 below need to be used to do the Question problem 13.3 a & b please write out all the numbers, Please do not use an excel spreadsheets. Thank you.

Exhibit 13.1

20162015

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Cash flows from operating activities:

Cash received from services $3,740$2,542

Cash paid to employees and suppliers (3,694) (2,536)

Interest paid (16) (19)

Interest earned 89 86

Net cash from operations $ 119 $ 73

Cash flows from investing activities:

Purchase of property and equipment ( $ 25) ($ 19)

Securities purchases ( 35) ( 15)

Net cash from investing activities ($ 60) ($ 34)

Cash flows from financing activities:

Repayment of long-term debt ($ 13) $ 0

Net cash from financing activities ($ 13) $ 0

Net increase (decrease) in cash and equivalents $ 46 $ 39

Cash and equivalents, beginning of year $ 67 $ 28

Cash and equivalents, end of year $ 113 $ 67

Exibit 13.2

2016 2015

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ASSETS

Current assets

Cash and cash equivalents $ 113 $ 67

Short-term investments 147 137

Accounts receivable, net 727 476

Inventories 27 22

Total current assets $1,014 $702

Investments $ 125 $100

Property and equipment

Medical and office equipment $ 56 $ 54

Vehicles 70 47

Total $ 126 $ 101

Less: Accumulated depreciation ( 45) ( 24)

Net property and equipment $ 81 $ 77

Total assets $1,220 $879

LIABILITIES AND EQUITY

Current liabilities

Notes payable $ 13 $ 13

Accounts payable 40 21

Accrued expenses 535 363

Total current liabilities $ 588 $397

Long-term debt 154 167

Total liabilities $ 742 $564

Equity $ 478 $ 315

Total liabilities and equity $1,220 $879

Exiibit 13.3

20162015

_________________________________________________________________________________________________________________

Net service revenues $3,996 $2,666

Cost of service revenues 2,937 1,944

Gross profit

$1,059 $ 722

General and administrative expenses 909 649

Depreciation 21 15

Total operating expenses $ 930 $ 664

Operating income $ 129 $ 58

Interest income 89 86

Interest expense 16 19

Total interest income, net $ 73 $ 67

Income before income taxes $ 202 $ 125

Income tax expense $ 39 $ 26

Net income (excess of revenues over expenses) $ 163 $ 99

Problem question:

13.3 Park Ridge Homecare's financial statements are presented in exhibits 13.1, 13.2,

and 13.3. In the chapter, we calculate selected ratios for 2016.

a. Calculate the business's financial ratios for 2015. Assume that Park Ridge had$18,000 in lease payments in 2015. (Use the ratio analysis discussion to identify the applicable ratios.)

b. Interpret the ratios. For the analysis, assume that the sector average data presented in the ratio analysis section are valid for 2015.