Perform a Du Pont analysis on the Heart Hospital. Assume that the industry average ratio are as follows:
           Total margin                15.0%

           Total asset turnover    1.5

           Equity multiplier          1.67

           Return of Equity         37.6%

B-Calculate and interpret the following ratios for the Heart Hospital

Industry Average

           Return of assets                     22.5%

           Current ratio                           2.0      

           Days of cash on hand             85 days

           Average collection period       20 days          

           Debt ratio                                40%

           Debt-to-equity ratio                 0.67

           Times interest earned             5.0

           Fixed asset turnover ratio       1.4