PLEASE ONLY ANSWER # 5, other questions are answered and meant to assist with #5

Part A: Financial Statement Analysis - Analyze and explain the content of financial statements and financial ratios for this healthcare organization. *** Goldenviews Financial Statements Provided Above.

1. Identify at least three financial strengths and three financial weaknesses for Goldenview Health System. Support your claims with specific information presented in the financial or operating data statements, and cite reasoning from your textbook. (20 pts)

These are the financial Strengths:

LOW DEBT EQUITY RATIO

REASON- The ideal debt equity ratio is 2:1 but the debt-equity ratio of the company is .6675:1.This shows that company is very less dependent on external sources of funds and is able to generate funds through internal operations.

HIGH RETURN ON EQUITY

REASON- The RETURN ON EQUITY OF COMPANY is 846.35 %. This reflects the strong margins and scope of high growth for the company.

HIGH PROFITABILITY.

REASON- The profitability of company is very high as is reflected by the profit margin i.e. 38.856% This show low expense ratio and high efficiency of company

These are the financial weaknesses:

DECLINE IN REVENUES- The revenue of company has fallen from 76760984$ in 2019 to 68049234$ in 2020.

This show company is not able to maintain its revenue.

INCREASE IN EXPENSES- While there is decrease in sales , there is rise in expenses from 37570625$ in 2019 to 41107542 $ in 2020. This shows the company is nor able to maintain its high efficiency.

DECREASE IN PROFIT- There is decline in profit from 38690359 in 2019 to 26441629 in 2020. This reflects company's profit growth is negative and is not in positive direction.

2. Calculate the following profitability ratio for 2020: a) total margin and b) the return on equity (ROE). (10 pts)

1. Total Margin for 2020 = 26441692/68049234

=38.856%

b) Return on Equity

=NET PROFIT/NET ASSETS

= 2644169/3124201

=846.35%.

3. Calculate the following debt and asset management ratios for 2020: a) total asset turnover, b) debt to equity ratio. (10 pts)

a) Asset Turnover Ratio

=TOTAL REVENUE/ TOTAL ASSETS

=68049234/5209691

=13.06 TIMES

b) Debt to Equity Ratio

=TOTAL DEBT/ NET ASSETS

=2085490/3124201

=.6675:1

4. Calculate the following operating indicators for 2020: a) revenue per discharge, b) profit per discharge, c) expense per discharge. (10 pts)

a) REVENUE PER DISCHARGE

=TOTAL REVENUE/ TOTAL DISCHARGES

=68049234/51948

=1309.949

b) PROFIT PER DISCHARGE

=TOTAL PROFIT/ TOTAL DISCHARGES

=26441692/51948

=509

c) EXPENSES PER DISCHARGE

=TOTAL EXPENSES/TOTAL DISCHARGES

=41107542/51948

=791.32

5. Discuss whats changed from one fiscal year to the next. How have these changes impacted the organizations financial standing?