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WellnessWorks Hospital reported the following financial data for the year: WellnessWorks Hospital reported that the fair market value of its assets was 1,800,000 and the

WellnessWorks Hospital reported the following financial data for the year:

WellnessWorks Hospital reported that the fair market value of its assets was £1,800,000 and the total liabilities amounted to £800,000. The net income for the year was £350,000.

Requirements:

  1. Calculate the Return on Equity (ROE) for WellnessWorks Hospital for the year ended 31 December 2021.
  2. Discuss how the fair market value of assets impacts the financial statements of WellnessWorks Hospital.
  3. Draft a summarized income statement for WellnessWorks Hospital for the year ended 31 December 2021.

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