The East Pacific Hospital, a nonprofit entity, has been experiencing declining iterating revenues, and the CEO is concerned about financial performance. The most recent summary operations statement and balance sheet are shown here:

East Pacific Hospital Operations Statement for Year Ended December 31, 2015
Revenues	$96,000,000
Expenses	94,000,000
Operating income	$2,000,000

East Pacific Hospital Balance Sheet (December 31, 2015 and 2014)
	2015	2014
Assets
-Current Assets	$21,000,000	$18,000,000
-Property, plant, and equipment	64,000,000	63,000,000
Total Assets	$85,000,000	$81,000,000
Liabilities and net assets
Liabilities
-Current liabilities	$17,000,000	$14,000,000
-Bonds payable	64,000,000	65,000,000
Total liabilities	81,000,000	79,000,000
Net assets
-Unrestricted net assets	4,000,000	2,000,000
Total liabilities and net assets	$85,000,000	$81,000,000

Questions:

1. Compute the total profit margin ratio for 2015. Is this good if the industry average is 2.5%? Why or why not?

2. Compute the return in assets for 2105. Is this good if the industry average is 8.3%? Why or why not?

3. Compute the return on equity ratio for 2015. Is this good if the industry average is 5%? Why or why not?

4. What balance sheet account provides the link between the balance sheet and the operations statement?