Question: ***This is my 3rd time requesting step by step instructions on how you derive at the answer. Example: I need to know each number used

***This is my 3rd time requesting "step by step" instructions on how you derive at the answer. Example: I need to know each number used to get the Total margin etc

Thank you

The Heart Hospital, Balance Sheet

September 30, 2015

Current assets:

Cash

$14,202.00

Accounts receivable, net

$5,918.00

Medical supplies inventory

$1,211.00

Prepaid expenses and other Current assets

$1,429.00

Total current assets

$22,760.00

Property, plant, and equipment, net

$33,769.00

Other assets

$901.00

Total assets

$57,430.00

Current liabilities:

Accounts payable

$1,910.00

Accrued compensation and benefits

$2,543.00

Other accrued liabilities

$1,843.00

Current portion of long-term debt

$2,064.00

Total current liabilities

$8,360.00

Long-term debt

$21,640.00

Total liabilities

$30,000.00

Owners'equity

$27,430.00

Total liabilities and owners' equity

$57,430.00

The Heart Hospital, Statement of Operations

Year Ended September 30, 2015

Paient service revenue net of discounts and allowances

$66,962.00

Provisions for bad debt

$2,457.00

Net patient service revenue

$64,505.00

Operating expenses

Personnel expense

$21,707.00

Medical supplies expense

$15,047.00

Other operating expenses

$9,721.00

Depreciation expense

$2,625.00

Total operating expenses

$49,100.00

Income from operations

$15,405.00

Other income (expenses)

Interest expense

$1,322.00

Interest and other income, net

$159.00

Total other income (expenses), net

$1,163.00

Net income

$14,242.00

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

Total Margin

15.0%

Total asset turnover

1.5

Equity multiplier

1.67

Return of equity (ROE)

37.6%

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