Question 6 (1 point) Hospital A has a higher ROE compared to hospital B Income Statement Company B 12/27/2014 55,870,000 20,261,000 35,609,000 11,537.000 8, 136,000 295,000 294,000 20,262,000 15,347.000 Consider financial statements for two companies, A and B Perform financial analysis of these two companies and compare them via calculation of ROE. ROA and ROCE. Balance Sheet All numbers in thousands Company A Company B Period Ending 12/26/2015 12/27/2014 Current Assets Cash And Cash Equivalents 15,308,000 2,561,000 Short Term Investments 10,005,000 11.493.000 Net Receivables 6.823.000 6,385.000 Inventory 5.167.000 4,273.000 Other Current Assets 3,053,000 3.018,000 Total Current Assets 40,356,000 27,730,000 Long Term Investments 7.851,000 9,120,000 Property Plant and Equipment 31,858,000 33,238,000 Goodwill 11,332.000 10 881.000 Intangible Assets 3,933,000 4,446,000 Accumulated Amortization Other Assets 7,735,000 8,505.000 Deferred Long Term Asset Charges Total Assets 103,065,000 91,900,000 Current Liabilities Accounts Payable 10,845,000 12,210,000 ShortCurrent Long Term Debt 2,634,000 1.596,000 Other Current Liabilities 2,188,000 2,205,000 Total Current Liabilities 15,667,000 16,011,000 Long Term Debt 20,036,000 12,059,000 Other Liabilities 2,841,000 3,278,000 Deferred Long Term Liability Charges 2,539,000 3,775,000 Minority Interest Negative Goodwill Total Liabilities 41,083,000 35,123,000 Stockholders' Equity Misc. Stocks Options Warrants 897,000 912,000 Redeemable Preferred Stock Preferred Stock - Common Stock 23,411,000 21.781,000 Retained Earnings 37,614,000 33,418,000 Treasury Stock Capital Surplus Other Stockholder Equity 60.000 666,000 Total Stockholder Equity 61,085,000 55,865,000 All numbers in thousands Company A Period Ending 12/26/2015 Total Revenue 55,355,000 Cost of Revenue 20,676,000 Gross Profit 34,679,000 Operating Expenses Research Development 12, 128,000 Selling General and Administrative 7.930,000 Non Recurring 354,000 Others 265.000 Total Operating Expenses 20,677,000 Operating Income or Loss 14,002,000 Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest and Taxes 14,212,000 Interest Expense Income Before Tax 14.212.000 Income Tax Expense 2,792,000 Minority Interest Net Income From Continuing Ops 11.735.000 Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items Net Income 11,420,000 Preferred Stock And Other Adjustments Net Income Applicable To Common Shares 11,420,000 15,801 000 15,801.000 4,097.000 12.115.000 11,704,000 11.704,000 True a O O False