1) Develop a 2014 statement of operations and a 2014 balance sheet (you can assume the format and numbers are correct on the 2013 balance sheet, and you can further assume that all balances carry forward to the 2014 balance sheet, with the exception of accounting for the 2014 loss from the statement of operations).

2) Analyze these 2014 financial statements using ratio analysis and identifystrengths, weaknesses, and recommendations for improvement.

Bobcat IDS balance Sheet as of December 31, 2013

2013

Assets

Current Assets

Cash and cash equivalents $178,750

Marketable securities 1,100,500

Accounts receivable less allowance 11,250,000

Inventories at cost 3,368,000

Other current assets 992,500

Total Current Assets 16,889,750

Land and improvements 3,250,000

Buildings 36,485,750

Fixed equipment 8,063,250

Moveable equipment 4,466,750

Property, Plant & Equipment 52,265,750

Less accumulated depreciation (18,080,750)

Total Property, Plant & Equipment 34,185,000

TOTAL ASSETS $ 51,074,750

Liabilities and Net Assets

Current Liabilities

Current portion of long-term debt $2,151,000

Accounts payable and accrued expenses5,400,000

Estimated amounts due to third-party payers 1,423,750

Other current liabilities 1,500,000

Total Current Liabilities 10,474,750

Long-term debt, net of current portion 37,000,000

TOTAL LIABILITIES 47,474,750

Net Assets

Unrestricted2,100,000

Temporarily restricted1,000,000

Permanently restricted500,000

TOTAL NET ASSETS 3,600,000

TOTAL LIABILITIES & NET ASSETS $51,074,750

Bobcat IDS Actual Expenses through December 31, 2014

Wages, taxes, benefits$42,000,000

Professional fees and commissions3,000,000

Drugs4,000,000

Medical and other supplies4,000,000

Food2,000,000

Purchased services2,000,000

Repairs and maintenance4,000,000

Utilities 2,000,000

Interest4,019,000

Depreciation6,500,000

TOTAL EXPENSES $ 73,519,000