Income statement Revenue:
Net patient service revenue		714,300
Expense:
Salaries and benefits- professional	215,000
Salaries and benefits - other	138,000
Depreciation-property, plant & equipment	54,000
Insurance expense - professional	39,000
Insurance expense other	111,300
Rent expense	22,000
Repairs expense	3,000
Accrued legal expenses	112,000
Interest expense	70,000
Utilities expense	33,000
Total Expenses		797,300
Net loss		-83,000

Statement of owners equity

Account Payable	79,300
Stanford health Care		916,000
Less: Net loss		-83,000
Stanford Health Care- Ending		833,000

Balance sheet

Asset
Current Assets
Cash	215,000
Patient Receivable Net	206,000
Corporate Receivable - Net	70,000
Inventory	55,000
Marketable Securitas	33,300
Total Current assets		579,300
Property, Plant & Equipment
Property, Plant & Equipment	618,000
Accumulated depreciation PP&E	-149,000
Property, Plant & Equipment Net		469,000
LAND		70,000
Intangible Assets
Patents	115,000
Trademarks	35,000
Total intangible assets		150,000
Total assets		1,268,300
Liability
Current Liabilities
Accounts payable	79,300
Interest payable	70,000
Salaries and Benefits payable professionals	125,000
Salaries and benefits payable -other	5,000
Total current liabilities		279,300
Long term liabilities
Long term notes payable	156,000
Total liabilities		435,300
Owners equity
Stanford health care	833,000
Total owners equity		833,000
Total liabilities and stock holders equity		1,268,300

Based on your analysis of Stanford Health Cares financial statements, prepare a 1 page memo to management on how the company can improve liquidity and profitability. Make any assumptions to support your recommendations.