- Suppose that two hospitals are identical in all ways except that Hospital N is relatively new while Hospital O is relatively old. Which of the following statements about a comparative financial statement analysis is true? (Hint: Think about both the cost of assets over time and depreciation expense.)

a. Hospital N will report higher net income.

b. Hospital O will report higher net income.

c. Hospital N will report higher net fixed assets.

d. Hospital O will report higher net fixed assets.

e. Both b. and c. above are correct.