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i need help with 17.5 a and b please 17.5 Consider the following financial statements for Green Valley Nursing Home, Inc., a for-profit, long-term care

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17.5 Consider the following financial statements for Green Valley Nursing Home, Inc., a for-profit, long-term care facility: Green Valley Nursing Home, Inc., Statement of Income and Retained Earnings, Year Ended December 31, 2015 Revenue: $3,163,258 Net patient service revenue 106,146 Other revenue Total revenues $3,269,404 Expenses: Salaries and benefits $1,515,438 Medical supplies and drugs 966,781 Insurance 296,357 Provision for bad debts 110,000 Depreciation 85,000 Interest 206,780 Total expenses $3,180,356 $ 89,048 Operating income Provision for income taxes 31,167 Net income $ 57,881 Retained earnings, beginning of year Retained earnings, end of year $ 199,961 $ 257,842 Green Valley Nursing Home, Inc., Balance Sheet, December 31, 2015 Assets Current Assets: Cash $ 105,737 Marketable 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 (continued) (continued from previous page) 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 Total asset turnover Equity multiplier Return on equity (ROE) 3.5% 1.5 2.5 13.1% b. Calculate and interpret the following ratios: Return on assets (ROA) Current ratio Days cash on hand Average collection period Debt ratio Debt-to-equity ratio Times interest earned (TIE) ratio Fixed asset turnover ratio Industry Average 5.2% 2.0 22 days 19 days 71% 2.5 2.6 1.4

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