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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