Question
St. Peters acute care center had net income of $1,600,000 and revenue totaling $34,600,000. Its administrative expense was $7,500,000 and its interest expense was $760,000.
St. Peters acute care center had net income of $1,600,000 and revenue totaling $34,600,000. Its administrative expense was $7,500,000 and its interest expense was $760,000. Holy Cross acute care center had net income of $600,000 and revenue totaling $12,300,000. Its administrative expense was $1,900,000 and its interest expense was $135,300?
Which of the following is TRUE?
Holy Cross's common-sized administrative expense and interest expense are 15.45% and 1.1%, respectively . | ||
St. Peter's has a common-sized net income of 4.62% and a common-sized administrative expense of 5.8%. | ||
St. Peter's has a lower common-sized interest expense than Holy Cross. | ||
The two acute care centers' financial numbers are not comparable since St. Peter's is so much bigger than Holy Cross. |
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