Problem 17.5 Recast the financial statements for Green Valley into common size financial statements. Describe at lease two advantages of a common size presentation of financial statements.

Chapter 17: Financial Condition Analysis Green Valley Nursing Home, Inc. Statement of Income and Retained Earnings Year Ended December 31, 2011 Revenue Net patient service revenue Other revenue $ 3,163,258 106,146 S 3,269,404 Total revenues S 3,269 404 nses: Salaries and benefits $ 1,515,438 966,781 296,357 110,000 85,000 206,780 Medical supplies and drugs Insurance and other Provision for bad debts Depreciation Interest Total expenses Operating income $ 3,180,356 $ 89,048 31,167 Provision for income taxes Net income Retained earnings, beginning of year Retained earnings, end of year S 57,881 S 199,961 257,842 Green Valley Nursing Home, Inc. Balance Sheet December 31, 2011 Assets Current Assets: Cash Marketable securities Net patient accounts receivable Supplies s 105,737 200,000 215,600 87,655 S 608,99:2 $ 2,250,000 356,000 Total current assets Property and equipment Less accumulated depreciation Net property and equipment Total assets $ 1,894,000 $ 2,502,992