View the step-by-step solution to:

HCA 515 Advanced Financial Management Assignment IV Consider the following financial statements for Green Valley Nursing Home, Inc., a for-profit,...

Hi could you please help me with this assignment? Assignment attached
HCA 515 Advanced Financial Management Assignment IV Consider the following financial statements for Green Valley Nursing Home, Inc., a for-profit, long-term care facility: Green Valley Nursing Home, Inc. Statement of Income and Retained Earnings Year Ended December 31, 2003 Revenue: Net patient service revenue $3,163,258 Other revenue $106,146 Total revenues $3,269,404 Expenses: Salaries and benefits $1,515,438 Medical supplies and drugs $966,781 Insurance and other $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 Green Valley Nursing Home, Inc. Balance Sheet Year Ended December 31, 2003 Assets Current Assets: Cash and cash equivalents $105,737 Investments $200,000 Net patient accounts receivable $215,600 Supplies $87,655 Total current assets $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 a. Perform a Du Pont analysis on Green Valley. Assume that the industry average ratios are as follows: Industry Average Green Valley Nursing Home Total margin 3.5% ? Total asset turnover 1.5 ? Equity multiplier 2.5 ? Return on equity (ROE) 13.1% ? 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 69% ? Debt-to-equity ratio 2.5 ? Times interest earned (TIE) ratio 2.6 ? Fixed asset turnover ratio 1.4 ? b. Calculate and interpret the following ratios:
Background image of page 1
Sign up to view the entire interaction

Top Answer

Dear Student, Please find... View the full answer

Finance- 8202340.xls

HCA 515 Advanced Financial Management Assignment IV
Consider the following financial statements for Green Valley Nursing Home, Inc., a for-profit, long-term
care facility:
Green Valley Nursing...

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online