Question
The Heart Hospital, Balance Sheet September 30, 2015 Current assets: Cash $14,202.00 Accounts receivable, net $5,918.00 Medical supplies inventory $1,211.00 Prepaid expenses and other Current
The Heart Hospital, Balance Sheet | |
September 30, 2015 | |
Current assets: | |
Cash | $14,202.00 |
Accounts receivable, net | $5,918.00 |
Medical supplies inventory | $1,211.00 |
Prepaid expenses and other Current assets | $1,429.00 |
Total current assets | $22,760.00 |
Property, plant, and equipment, net | $33,769.00 |
Other assets | $901.00 |
Total assets | $57,430.00 |
Current liabilities: | |
Accounts payable | $1,910.00 |
Accrued compensation and benefits | $2,543.00 |
Other accrued liabilities | $1,843.00 |
Current portion of long-term debt | $2,064.00 |
Total current liabilities | $8,360.00 |
Long-term debt | $21,640.00 |
Total liabilities | $30,000.00 |
Owners'equity | $27,430.00 |
Total liabilities and owners' equity | $57,430.00 |
The Heart Hospital, Statement of Operations | |
Year Ended September 30, 2015 | |
Paient service revenue net of discounts and allowances | $66,962.00 |
Provisions for bad debt | $2,457.00 |
Net patient service revenue | $64,505.00 |
Operating expenses | |
Personnel expense | $21,707.00 |
Medical supplies expense | $15,047.00 |
Other operating expenses | $9,721.00 |
Depreciation expense | $2,625.00 |
Total operating expenses | $49,100.00 |
Income from operations | $15,405.00 |
Other income (expenses) | |
Interest expense | $1,322.00 |
Interest and other income, net | $159.00 |
Total other income (expenses), net | $1,163.00 |
Net income | $14,242.00 |
Perform a Du Pont analysis on The Heart Hospital. Assume that the industry average ratios are as follows: | |
Total Margin | 15.0% |
Total asset turnover | 1.5 |
Equity multiplier | 1.67 |
Return of equity (ROE) | 37.6% |
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