I need help with Question B. At the very bottom II. Consider the following financial statements for nonprofit Dispatch & Patch

Emergency Services:

Dispatch & Patch Emergency Services Statement of Operations and Change in net Assets

Year Ended December 31, 2015

Revenue:

Insurance Proceeds	$30,000
Co-Payments	4,500
Interest and Other Income	300
Total Revenues	$34,800

Expenses:

Salaries and Benefits	$20,000
Depreciation	2,000
Provision for Bad Debts	1,500
Supplies	1,300
Insurance	1,000
Interest	200
Total Expenses	$26,000

Net Income $ 8,800

Net Assets, January 1, 2015 $ 400

Net Assets, December 31, 2015 $ 9,200

Assets:

Dispatch & Patch Emergency Services Balance Sheet

December 31, 2015

Cash	$ 2,200
Patient Accounts Receivable	1,200
Supplies	100
Total Current Assets	$ 3,500
Net Fixed Assets	$18,400
Total Assets	$21,900
Liabilities: Accounts Payable	$ 2,300
Accrued Expenses	1,400
Current Long-term debt	1,000
Total Current Liabilities	$ 4,700
Long-term Debt	$ 8,000
Total Liabilities	$12,700
Net Assets (Total Equity)	$ 9,200

Total liabilities and Net Assets $21,900

Assume the industry average ratios are:

Total margin 3.5%

Total Asset Turnover 2.0

Equity Multiplier 3.0

Return on Equity (ROE) 21.0% Return on Assets (ROA) 7.0% Current Ratio 1.2

Days Cash on Hand 40 days Average collection period 10 days Debt ratio 67%

Debt-to-Equity ratio 2.0

Times Interest Earned 3.2

Fixed Asset Turnover 6.0

A. (6 Points) Perform a Du Pont analysis on Dispatch & Patch. Comment on what the results imply.

• Du-pont analysis helps to measure the assets at their gross book value rather than at net book value in order to produce higher Return on equity (ROE).

1. 1. B.(Show your work)For Dispatch & Patch, calculate the following ratios and give a one or two sentence comment on what the value of each of their ratios means in light of the industry average:
      1. Return on Assets Value:

1. 1. 1. Current Ratio Value:
      2. Days Cash on Hand Value:

1. 1. 1. Average collection period Value:

1. 1. 1. Debt-to-Equity ratio Value:

1. 1. 1. Times Interest Earned Value:

1. 1. 1. Fixed Asset Turnover Value: