Question
Using the information in the Unit 7 Assignment 2: Construct a KPI Dashboard Assignment, prepare a one-page KPI report for management. Make sure to utilize
Using the information in the Unit 7 Assignment 2: Construct a KPI Dashboard Assignment, prepare a one-page KPI report for management. Make sure to utilize all of the components asked for below. In addition, please incorporate a comparison and evaluation of Green Valley to its industry competitors.
Based on the following Statement of Income and Retained Earnings:
Green Valley Nursing Home Inc. Statement of Income and Restinaed Earnings Year Ended December 31, 2015 | |
Revenue: | |
Net patient service revenue | 3,163,258 |
Other revenues | 106,146 |
Total revenues | 3,269,404 |
Expenses | |
Salaries and benefits | 1,515,438 |
Medical supplies and drugs | 966,781 |
Insurance | 296,357 |
Provision for bad debts | 110,000 |
Depreciation | 85,000 |
Interest | 206,780 |
Total expenses | 3,180,356 |
Operating income | 89,048 |
Provision for income taxes | 31,167 |
Net Income | 57,881 |
Retained earnings, beginning of year | 199,961 |
Retained earnings. end of year | 257,842 |
Based on the information in your income statement, you will need to answer the following questions. More data is contained in the linked document under materials:
Perform a DuPont analysis.
Calculate and interpret ratios.
Determine the company's price / earning ratio and market / book ratio.
Perform a DuPont analysis on Green Valley Nursing Home. Assume the following industry averages:
-Total margin 2.5%
- Total asset turnover 1.5
- Equity Multiplier 2.5
- Return on Equity (ROE) 13.1%
Calculate and interpret the following ratios:
Industry Average
- Return on assets (ROA) 5.2%
- Current ratio 2.0
- Days cash on hand 22 days
- Average collection period 19 days
- Debt ratio 71%
- Debt-to-equity ratio 2.5
- Times-interest-earned (TIE) ratio 2.6
- Fixed asset turnover ratio 1.5
3. Assume there are 10,000 shares of Green Valleys stock outstanding and that some recently sold for $45 per share. What is the companys price/earnings ratio? What is the market/book ratio?
Green Valley Nursing Home Inc. Balance sheet Year Ended Decemeber 31, 2015 | |
Assets | |
Current Assets | |
Cash | 105,737 |
Marketable securities | 200,000 |
Net patient accounts recievable | 215,600 |
Supplies | 87,655 |
Total current assts | 608,992 |
Property and equipment | 2,250,000 |
Less accumulated depreciation | 356,000 |
Net property and equipment | 1,894,000 |
Total Assets | 2,502,992 |
Liabilities and shareholders equity | |
Current liabilities | |
Accounts payable | 72,250 |
Accrued expenses | 192,900 |
Notes payable | 100,000 |
Current portion of long-term debt | 80,000 |
Total current liabilities | 445,150 |
Long-term debt | 1,700,000 |
Shareholders Equity | |
Common Stock, $10 par value | 100,000 |
Retained Earnings | 257,842 |
Total shareholders equity | 357,842 |
Total liabilities and shareholders equity | 2,502,992 |
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