Riverside Memorial’s primary financial statements are presented in exhibits 17.1, 17.2, and 17.3.

a. Calculate Riverside’s financial ratios for 2019. Assume that Riverside had $1,000,000 in lease payments and $1,400,000 in debt principal repayments in 2019.

b. Interpret the ratios. Use both trend and comparative analyses.
For the comparative analysis, assume that the peer group average data presented in the book are valid for both 2019 and 2020.

Exhibits 17.1

Exhibits 17.2

Exhibits 17.3

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Cash flows from operating activities: Operating income Adjustments: Depreciation Increase in accounts receivable Increase in inventories Decrease in accounts payable Increase in accrued expenses $6,474 4,130 (1,102) (195) (438) 229 Net cash flow from operations $9,098 Cash flows from investing activities: Investment in property and equipment ($4,293) Investment in short-term securities (2,000) Net cash flow from investing ($6,293) Cash flows from financing activities: Nonoperating income Repayment of long-term debt Repayment of notes payable Lease principal repayment Net cash flow from financing Net increase (decrease) in cash and equivalents Beginning cash and equivalents Ending cash and equivalents ($ 832) 3,095 $2,263 $2,098 (2,150) (3,262) (323) ($3,637)