Should I suggest my boss to acquire UMC for $5 million? Why? Why not? (3 major points needed)

Common Size Statement income Statement Year TOTAL REVENUE Service Revenue Cost of Medical Supplies for service Net Service Revenue Equipmen'o'Suppl']r charges Cost of Medical Supplies additional Net Equipmen'ol'Suppl']r charges N ursing Revenue Cost of medical supplies nursing Net Nursing Revenue RENT REVENUE Total Net Revenue Expenses Ad minist rative Depreciation Uccupa ncy expensa Employee Costs Total Expenses EBIT Fina nce in co me Fina nce costs Prot Before Tax In come tax Net Prot After Tax 2012 2015 2015 2014 2013 100.00% 100.00% 100.00% 100.00% 100.00% 22.25% 23.53% 23.21% 22.44% 25.54% [10.50%] [3.32%] [10.12%] [5.33%] [3.32%] 52.15% 53.25% 58.50% 52.44% 55.22% 5.53% 5.12% 4.24% 4.03% 4.03% [0.50%] [0.45%] [0.41%] [0.42%] [0.52%] 5.03% 4.58% 3.33% 3.52% 3.45% 8.32% 3.14% 3.51% 8.34% 9.22% [1.23%] [1.15%] [1.13%] [1.14%] [1.24%] 2.14% 5.99% 148% 120% 3.53% 8.34% 3.11% 8.43% 9.53% 10.55% 82.52% 88.54% 88.34% 88.39% 88.32% [3.40%] [3.40%] [2.53%] [2.33%] [2.35%] [3.04%] [1.32%] [1.03%] [0.35%] [0.23%] [3.20%] [3.00%] [2.32%] [2.23%] [2.23%] [51.21%] l[49.15%]I [43.22%] [45.31%] [41.49%] [51.35%] [52.54%] [55.25%] [52.35%] [42.42%] 25.32% 31.00% 33.08% 35.43% 40.95% 0.33% 0.25% 0.20% 0.12% 0.05% [3.82%] [9.33%] [10.33%] [10.42%] [3.45%] 12.89% 21.44% 22.45% 25.13% 32.55% [5.32%] [5.43%] [5.23%] [2.54%] [3.25%] 12.52% 15.01% 15.21% 12.59% 22.28% Trend Analysis income Statement YEEI TOTAL R E'U'ENU E SEWlCE REVENUE Cost of Medical Supplies for service Net Service Revenue Er}uipmentr'SuppM}r charges Cost of Medical Supplies additional Net Equipmenthuppl'}r charges N ursing Revenue Cost of medical supplies nursing Net Nursing Revenue Rent Reven u e Total Net Revenue Expenses Ad ministrative Depreciation Occu pancv expe n53 Wages Total Expenses EBIT Fl" 3 \"CE in CDIT'IE Fl" 3 \"CE CDStS Pro'lit Before Tax Income tax Net Prot After Tax 2017 2016 2015 2014 2013 427.53% 413.77% 337.67% 225.35% 100.00% 440.10% 436.67% 403.33% 231.53% 100.00% {461.60%} {413.33%} {333.53%} {223.36%} {100.00%} 436.33% 433.13% 404.63% 231.76% 100.00% 537.65% 533.51% 403.64% 223.63% 100.00% {374.13%} {353.67%} {230.43%} {137.33%} {100.00%} 622.37% 563.26% 423.36% 236.63% 100.00% 366.10% 343.53% 341.53% 204.24% 100.00% {423.33%} {330.00%} {353.33%} {206.67%} {100.00%} 357.77% 343.63% 333.31% 203.33% 100.00% 366.10% 343.53% 341.53% 204.24% 100.00% 424.15% 420.57% 337.53% 225.32% 100.00% {503.33%} {500.00%} {350.00%} {236.67%} {100.00%} {1652.63%} {1052.63%} {531.53%} {247.37%} {100.00%} {537.33%} {550.00%} {436.36%} {276.03%} {100.00%} {532.33%} {437.44%} {455.30%} {252.13%} {100.00%} {553.12%} {503.34%} {451.74%} {252.23%} {100.00%} 274.31% 317.73% 313.17% 135.40% 100.00% 3400.00% 2300.00% 1600.00% 300.00% 100.00% {445.36%} {437.30%} {436.32%} {273.62%} {100.00%} 234.36% 276.50% 267.36% 174.41% 100.00% {234.36%} {276.50%} {267.36%} {174.41%} {100.00%} 234.36% 276.50% 267.36% 174.41% 100.00% Common Size Statement Balance Sheet Year Current Assets Cash and cash equivalents Trade and other receivables Inventories Clther current assets Total Current Assets Non Current Assets Property, Plant and Equipment {net} Total Non Current Assets Total Assets Current Liabilities Trade and other payables lnoome Tax Payable ProyTsions Interest-bearing loans and borrowings Total Current Liabilities Non Current Liabilities Interest-bearing loans and borrowings Provisions Total Non Current Liabilities Total Liabilities Net Assets Equity Contributed equity Retained profits Total Equity 2012 1.04% 0.33% 3.03% 0.41% 4.92% 95.03% 95.03% 100.00% 1.40% 2.12% 0.03% 5.15% 3.25% 63.40% 0.25% 63.63% 22.39% 22.61% 16.11% 11.50% 22.61% 2016 0.24% 0.25% 2.63% 0.33% 4.55% 95.45% 95.45% 100.00% 1.33% 1.16% 0.10% 6.03% 3.62% 66.63% 0.22% 66.90% 25.52% 24.43% 15.22% 3.66% 24.43% 2015 0.54% 0.40% 1.93% 0.36% 3.29% 96.21% 96.21% 100.00% 1.22% 0.30% 0.09% 4.32% 6.42% 69.29% 0.25% 69.54% 26.02% 23.93% 15.22% 3.26% 23.93% 2014 0.43% 0.20% 1.62% 0.23% 2.54% 92.46% 92.46% 100.00% 0.95% 0.60% 0.03% 4.23% 5.91% 60.23% 0.23% 61.01% 66.92% 33.03% 22.33% 10.20% 33.03% 2013 0.39% 0.9 6% 1.10% 0.19% 2.64% 92.36% 92.36% 100.00% 0.21% 0.51% 0.02% 4.90% 6.13% 42.65% 0.19% 42.34% 49.03% 50.92% 35.9 6% 15.0 2% 50.92% Trend Analysis Balance Sheet Year 2012 2015 2015 2014 2013 Current Assets Cash and cash equivalents 594.24% 431.53% 315.29% 194.24% 100.00% Trade and other receivables 91.11% 122.23% 95.55% 33.33% 100.00% Inventories 523.13% 552.31% 414.05% 232.31% 100.00% Other current assets 431.32% 454.55% 435.35% 190.91% 100.00% Total Current Assets 415.55% 392.99% 234.31% 151.35% 100.00% Non Current Assets Property, Plant and Equipment {net} 212.94% 223.53% 222.12% 152.30% 100.00% Total Non Current Assets 212.94% 223.53% 222.12% 152.30% 100.00% Total Assets 223.13% 223.05% 223.59% 152.14% 100.00% Current liabilities Trade and other payables 441.52% 422.23% 403.33% 211.11% 100.00% lnoome Tax Pa 'jl'a ble 929.53% 522.22% 359.25% 135.19% 100.00% Provisions 225.00% 325.00% 300.00% 125.00% 100.00% Interestbearing loans and borrowings 234.52% 233.22% 201.25% 132.41% 100.00% Total Current Liabilities 315.92% 319.91% 239.43% 150.21% 100.00% Non Current Liabilities Interestbearing loans and borrowings 331.21% 355.24% 321.50% 223.93% 100.00% Provisions 290.91% 322.22% 309.09% 190.91% 100.00% Total Non Current liabilities 331.49% 355.12% 321.22% 223.23% 100.00% Total Liabilities 329.54% 351.55% 354.51% 214.50% 100.00% Net Assets 120.39% 109.23% 102.59% 101.93% 100.00% Equity Contributed equity 100.00% 100.00% 100.00% 100.00% 100.00% Retained profits 120.92% 131.50% 125.23% 105.21% 100.00% Total IEr:|uit'vl|r 120.39% 109.23% 102.59% 101.93% 100.00% Universal Medical Centre Statement of Cash Flow for the year ended 315t December 291? 2015 2015 2014 Operating activities Receipt from customers $10,321 $10,039 $9,325 $5,49 Pavments to suppliers [$2,340] [$6,376] {$6,206} ($3,510) Interest received $39 $26 $18 $9 Tax paid [$433] {$503} {$579} [$335) Net cash from operating activities $2,533lr $2,636 $2,559 $1,604 lnve sting activities Payments for PPE 0 0 {S4,23] ($3,306) Proceeds from the sale of plant and equipment 5? $4 $0 S Net cash from investing activities $2 $4 [$4,023] [$3,306] Financing activities Dividend paid [$946] [$1,421] {$1,304} [$900) Proceedsrepavment] of borrowings [$250] {$142} $3,860 $3,194 Interest paid [$910] {$995} {SLIDE} [$521] Net cash from nancing activities {$2,606} ($2,614) $1,542 $1,123 Net change in cash $38 $26 $28 $21 Cash and cash equivalents at start $98 $22 $44 $23 Cash and cash equivalents at end 5136 $93 $22 $44 Raos 2011 2016 2015 2014 RDA 20.6296 23.5696 21.4396 25.1396 RDE 31.1296 41.1196 41.1496 31.9196 GPM 36.5596 31.5396 31.2696 31.1696 PMlEBITJ 26.3296 31.0096 33.0396 35.4396 PMINPATJ 11.3996 21.4496 22.4596 25.1396 Cash Flow to Sale Ratio 25.5596 26.0196 21.3496 29.4196 Current Ratio 0.56 0.52 0.51 0.43 :1 Quick Ratio 0.16 0.11 0.15 0.12 :1 Cash flow ratio 2.31 2.23 2.96 2.96 times Account Receivables Turnover 125.11 121.15 236.43 131.41 times Davs Receivables Turnover 2.92 3.01 1.54 2.13 days Inventory Turnover 3.35 3.14 5.21 5.94 times Davs lnventorv Turnover 103.34 103.66 16.65 63.10 days Asset Turnover 0.13 0.16 0.33 0.13 times Debt 12.3996 15.5196 16.0296 66.9296 Equityr 21.6196 24-4396 23.9396 33.0396 Debt to Equitv 2.62 3.09 3.11 2.02 times Interest Coverage 3.12 3.24 3.11 3.44 times Debt Coverage Ratio 3.15 3.33 3.63 3.49 times Net tangible asset backing per share $1.11 $1.55 $1.53 51.45 Earnings per share $0.62 $0.12 $0.10 50.46 Dividends per share $0.45 $0.10 $0.62 $0.43 Dividend pav out ratio 1396 9196 3996 9496 Price earnings ratio 3.31 share price unknown Share Price $2.33 share price unknown ll'ear CtlTerIt Assets Cash and ash equivalents Trade and other receivabla [netl lnventoria El'tl'Ier current assets Total current Assets I'll-on Current Assets Property, Plant and Equipment [net] Total Non Current Assets Total Assets Cutent ljab'i ities Trade and other payabl Income Tax Payable Provisions lnterEtbean'ng loans and borrowings Total Cut-ant Liah'd ities I'll-on Current Liabilities lnteratbean'ng loans in! borrowings Provisions Total Non Current Liabilities Total Lialpi ities HetAssets Equity Cmuibuted equity Remirieol prots Total Equity Universal Medial Centre Balance Sheet as at am December 201?" [TIKH $135 551 $402 553 55a: 512,592 512.392 513.031 $133 $2?5 511 55:1 $1541 Sazas 532 $8394 $9335 $3599 $2500 $1399 $3599 Addiu'onal lnfonnau'on: Dividend Calculations Opening Retained Prot Add Prot Available Tess Dividends Closing retained prot 51553 $1592 sagas 51399 2015 {TIME 5'93 5100 $35? 550 5605 512313 $12313 513313 51?? $155 513 5310 51.155 SBTd 50.510 510.065 53.153 Sagan 51553 53253 s1sas SL521 $2524 51331 51,153 1015 TODD! $1131? slasJ? Susass 5159 510? 512 55?? 59254 59.203 510.153 53.203 52400 stoop $3.203 5935 Staal 5ZADT 51304 5111a 5aL141 2015 55,636 55.536 55.300 541 $236 $301 52391 511 also: 52353 523?? 52500 53?? 52.917 Llni'u'ersal Medial Centre Income Smernent fer the {rear ended 31.5! December Year 2111? 1515 25115 ZIJLII 21113 {'Dml {\"10} {'um] {W01 {'Dml TII'JTAI. REVENUE 5111322 5111.155 55.5511 55.1153 52.4111 Senrine Heuenue 5511125 51,554 51,5511 54,273 5111324 Cast uf Medicell Suppliejfursereice {51,094] {5595} {SB-4?] {5545] {523?] Net Service Revenue $51932 55,555 $5,421 53,5?8 51153? Equ hmentfupphr charges 55?1 5524 539? 5223 55? Cost ef Medicell Supplies. edditienal {552] {550} {535] {525] {514] Net Equipmentfupphl marge; 5520 54?5 5355 $19? 583 Nursi'lg Revenue 51354 5525 55115 5452 5235 Cast of medial supp-HE nurs'rlg {512?] {511?} {5105] {552] {530] Net Nursing Revenue 533? ERIE 51110 $42!] 5205 Rent Revenue 5351 5322 5MB ESE 525? Total Net Revenue 55511115 53,515 $11,251: 54.11211 52,1311 Expenses Adm 'II'Istlrlt'l'nre {5351] {53-45} {5242] {5163] {555] Depreciation {5314] {52m} {5101] {54?} l{519] Dempancy' {5330] {5304} {5259] {5152] {555] Ern plcryee Caste [55,3313] 54,932]: {555ml 52,525] [51,0112] Total Expense: [$5.551] ($5,531:- [55.1?2] (52,8311:- [$1.145] Earnings Before Interest and Tax 52,11? 53,142 53,955 51.532 5955 Finance incnme 535 $25 518 5'5 51 Finance mils {5510] {5595} {51'014] {55?1] {5204] Prot Before Ta: $1.341; 51.115 52.1111 51.3111 51111; lncnme [ex {5554] {5552} {5535] {5411] {5235] He: Prot After 1a.: SL332 51521 51.411 5555 55511