Using the data from the financial statements below, calculate, interpret and briefly explain a trend and comparative analysis on each ratio: RATIOS: Industry Averages Total Margin 5.3 Operating Margin 3.6 ROA (Return on Assets) 4.9 ROE (Return on Equity) 8.3 Current Ratio 2.0 Days Cash on Hand 31.5 Debt Ratio 41.8 Times Earned Interest 4.0 Fixed Asset Turnover 2.1 Total Asset Turnover 0.98 Days in Patient A/R 68.0

INCOME STATEMENT 2015 2014 Net patient service revenue $99,750 $94,850 Premium revenue $8,300 $4,250 Other revenue 2,750 2,225 Total operating revenue $110,800 $101,325 Nursing services $57,280 $54,750 Dietary services 5,350 5,275 General services 12,250 9,750 Administrative services 9,750 9,425 Employee health and welfare 9,750 9,500 Provision for uncollectibles 4,988 4,268 Provision for malpractice 1,250 1,200 Depreciation 5,200 4,890 Interest expense 1,225 1,785 Total expenses 107,043 100,843 Operating income $3,758 $482 Nonoperating income $1,285 $1,995 Net income $5,043 $2,477 BALANCE SHEET 2015 2014 Cash and equivalents $3,875 $3,100 Short-term investments 2,450 1,500 Accounts receivable 19,500 18,250 Inventories 2,750 2,600 Total current assets $28,575 $25,450 Gross plant and equipment 142,500 140,285 Accumulated depreciation 23,250 22,150 Net plant and equipment $119,250 $118,135 Total Assets $147,825 $143,585 Accounts payable $4,350 $3,985 Accrued expenses 5,250 4,985 Notes payable 2,825 4,250 Total current liabilities $12,425 $13,220 Long-term debt $24,750 $30,900 Capital lease obligations 1,750 2,250 Total long-term liabilities $26,500 $33,150 Net assets (equity) $108,900 $97,215 Total liabilities & equity $147,825 $143,585 STATEMENT OF CASH FLOWS 2015 Cash Flows from Operating Activities Net income $5,043 Adjustments: Depreciation 5,200 Increase in accounts receivable (1,250) Increase in inventory (150) Decrease in accounts payable 365 Increase in accrued expenses 265 Net cash flow from operations $9,473 Cash Flows from Investing Activities Investment in plant and equipment ($2,215) Investment in short-term securities (950) Net cash flow from investing ($3,165) Cash Flows from Financing Activities Repayment of notes payable ($1,425) Repayment of long-term debt ($6,150) Capital lease principle repayment (500) Net cash flow from financing ($8,075) Net increase(decrease) in cash ($1,768) Beginning cash and equivalents $3,100 Ending cash and securities $1,333