Question: Please explain the answer and show work. Perform a Du Pont analysis on the Heart Hospital. Assume that the industry average ration are as follows:

Please explain the answer and show work.

Perform a Du Pont analysis on the Heart Hospital. Assume that the industry average ration are as follows:

Total margin 3.5%

Total asset turnover 1.5

Equity multiplier 2.5

Return of Equity 13.1%

Calculate and interpret the following ratios for the Heart Hospital

Industry Average

Return of assets 5.2%

Current ratio 2.0

Days of cash on hand 22 days

Average collection period 19 days

Debt ratio 71%

Debt-to-equity ratio 2.5

Times interest earned 2.6

Fixed asset turnover ratio 1.4

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