ZuoTi.Pro
Question
Please can someone help Me this question
Please show the formula and the answe.
media%2Fd9d%2Fd9d5e2f0-ec52-460c-b37c-a0
Park Ridge Homecare Statement of Income Year Ended December 31, 2015 (in Thousands) Net Service Revenues Cost of Service Revenues 2666 1944 Gross Profit 722 General and Administrative Expenses Depreciation 649 15 Total Operating Expenses Operating Income 684 58 Interest Income Interest Expense 86 19 Total Interest Income, net Income Before Income Taxes 67 125 26 Income Tax Expense Net Income (Excess of Revenues over Expenses) Calculate the following Ratios below and compare with the ratio in 2016 and the Industry average. Insert Excel formula in the cells. Make sure you put the parenthesis in the formula to specify the order of operations to be done by the Excel formula a. Total (profit) Margin in 2015 Total (profit) Margin in 2016 Industry Average 40% 5.9% b. Operating Margin in 2015 3.2% 5.6% Operating Margin in 2016 Industry Average c. Return on Assets (ROA) in 2015 Industry Average d. Return on Equity (ROE) in 2015 Industry Average 13.4% 12.7% Return on Assets (ROA) in 2016 34.1% 36.5% Return on Equity (ROE) in 2016 e. Current Ratio in 2015 Current Ratio in 2016 Industry Average 1.9 days 24.7 days 22.6 days f. Days Cash on Hand in 2015 Days Cash on Hand in 2016 Industry Average
h. Debt Ratio in 2015 Debt Ratio in 2016 Industry Average 60.8% 63.9% i. Debt to Capitalization Ratio in 2015 Debt to Capitalization Ratio in 2016 Industry Average 24.4% 31.2% j. Times Interest Earned (TIE) Ratio in 2015 Times Interest Earned (TIE) Ratio in 2016 Industry Average times 13.3 times 10.4 times times 50.4 times 63.1 times k. Fixed Asset Turnover Ratio in 2015 Fixed Asset Turnover Ratio in 2016 Industry Average times 3.3 times 3.4 times I. Total Asset Turnover Ratio in 2015 Total Asset Turnover Ratio in 2016 Industry Average days 66.5 days 37.1 days m. Days in Accounts Receivable in 2015 Days in Accounts Receivable in 2016 Industry Average Interpret at least three Ratios by comparing the ratios in 2015, 2016 and the industry average. Is Park Ridge Homecare profitable? What areas should management be concerned about? Explain your answer.
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

As per rules I am answering the first 4 subparts of the question

1: Profit margin in 2015= Net Income/ Net Service revenues

=99/ 2666

=3.71%

The profit margin is much below the margin in 2016. This is a good sign since the margin has increased showing higher profitability. It is also much lower than the industry average and the firm needs to analyze its cost and revenue structure.

2: Operating margin= Operating Income/ Net Service revenues

= 58/2666

=2.18%

The Operating margin is much below the margin in 2016. This is a good sign since the margin has increased showing higher profitability. It is also much lower than the industry average and the firm needs to analyze its operating costs.

3: ROA= Net Income/ Totalassets

= 99/879 = 11.26%

The ROA is much below the ROA in 2016. This is a good sign since the ratio has increased showing greater efficiency of assets used. It is much lower than the industry average which means the firm was less efficient in 2015, but in 2016 that has been covered up.

4: ROE= Net Income/ Equity

= 99/315

=31.43%

0 0
Add a comment
Know the answer?
Add Answer to:
Please can someone help Me this question Please show the formula and the answe. We were...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • there are 5 photos Au bolcuole Normal No Spacing Heading 1 Yux Construction Company Financial Stat....

    there are 5 photos Au bolcuole Normal No Spacing Heading 1 Yux Construction Company Financial Stat. Balance sheet 2018 2017 Formulae Current ratio Current assets/Current 585,632 878,000 $7,282 632,160 Liabilities Aucts Cash Account receivable (A/R) Inventories Total current Asset Gross Fixed Assets Less: Depreciation Net Fixed Assef Total Asset 1.716,480 2,680,112 1,197,160 380,120 817,040 3,497,152 1,287,360 1,926,802 1,202,950 263,160 939,790 2,866,592 Inv. turnover - Sales / Inventories FA turnover - Sales / Net fixed assets TA turnover = Sales /...

  • Please show all work: Perform a DuPont Analysis

    Consider the following financial statements for Green Valley Nursing Home, Inc., a for-profit, long-termcare facility:Green Valley Nursing Home, Inc.Statement of Income and Retained EarningsYear Ended December 31, 2XXXRevenue:Net patient service revenue $3,163,258Other revenue $106,146Total revenues $3,269,404Expenses:Salaries and benefits $1,515,438Medical supplies and drugs $966,781Insurance and other $296,357Provision for bad debts $110,000Depreciation $85,000Interest $206,780Total expenses $3,180,356Operating income $89,048Provision for income taxes $31,167Net income $57,881Retained earnings, beginning of year $199,961Retained earnings, end of year $257,842Green Valley Nursing Home, Inc.Balance SheetYear Ended December 31,...

  • How do you perform a Du Point analysis given average ratios. This question comes from 17.4...

    How do you perform a Du Point analysis given average ratios. This question comes from 17.4 of the book. Healthcare finance how do I get started 17.4 Consider the following financial statements for BestCare HMPO, a not-for-profit managed care plan: BestCare HMO Statement of Operations and Change in Net Assets, Year Ended June 30, 2015 in thousands) Revenue: Premiums earned $26,682 Coinsurance 1,689 Interest and other income 242 Total revenues $28,613 Expenses: Salaries and benefits $15,154 Medical supplies and drugs...

  • I need step by step of how you solved the problems. Add, subject, divide or multiply...

    I need step by step of how you solved the problems. Add, subject, divide or multiply however you came to your totals. 3-30 calculate the following ratios for Lake of Egypt Marina, Inc, as of yearend 2015. (LG3 – 1 through LG3-5) Lake of Egypt Marines, Inc.                       Industry Current ratio                                     2.00 times Quick ratio                                                1.20 times Cash ratio                                         0.25 times Inventory turnover                             3.60 times Days’ salary in inventory                    101.39 days Average collection period                   32.50 days Average payment period                   ...

  • How do I solve for b? data presented in esented in the core valid for both...

    How do I solve for b? data presented in esented in the core valid for both 2014 and 2015. the following financial statements for BestCare HMO, a 174 Consider the for profit managed care plan Care HMO Statement of Operations and Change in Not Aucts, Year Ended June 30, 2015 in thousands $26,682 1.689 242 $28,613 Revenue Premiums earned Coinsurance Interest and other income Total revenues Expenses Salaries and benefits Medical supplies and drugs Insurance Provision for bad debts Depreciation...

  • please show all work in Excel CHAPTER 3: FINANCIAL STATEMENT ANALYSIS TOOLS NOTE: PLEASE USE WORKSHEET...

    please show all work in Excel CHAPTER 3: FINANCIAL STATEMENT ANALYSIS TOOLS NOTE: PLEASE USE WORKSHEET #3 IN THE ATTACHED EXCEL FILE TITLED "Homework for Chapter 3_Excel TO SOLVE THE FOLLOWING PROBLEM. Homework for Chapter 3: Problem #1 in the text (Chapter 3) Sweet Dreams Corp. Balance Sheet As of Dec. 31 2017 Assets 2017 2016 Cash 431.000 339,000 Accounts Receivable 503.000 365,000 Inventories 289,000 300,000 Total Current Assets 1.223.000 1.004.000 Sweet Dreams Corp. Income Statement For the Year Ended...

  • Q-2 FINANCIAL RATIO FORMULAS Match each of the following financial ratios with its formula: Accounts Payable...

    Q-2 FINANCIAL RATIO FORMULAS Match each of the following financial ratios with its formula: Accounts Payable Tunover Ratio Fixed Asset Turnover Ratio Asset Turnover Ratio Cash Coverage Ratio Cash Ratio Current Ratio Average Age of Receivables Average Days Supply in Inventory Receivable Turnover Ratio Debt-to-Equity Ratio Earnings per Share (EPS) Financial Leverage Percentage Times Interest Earned Ratio Inventory Turnover Ratico Price/ Earnings (P/E) Ratio Profit Margin Quality of Income Quick Ratio Return on Equity (ROE) Return on Assets (ROA) A....

  • please show how numbers are calculated. and all work must be done in excel CHAPTER 3:...

    please show how numbers are calculated. and all work must be done in excel CHAPTER 3: FINANCIAL STATEMENT ANALYSIS TOOLS NOTE: PLEASE USE WORKSHEET #3 IN THE ATTACHED EXCEL FILE TITLED "Homework for Chapter 3 Excel TO SOLVE THE FOLLOWING PROBLEM. Homework for Chapter 3: Problem in the text (Chapter 3) Sweet Dreams Corp. Balance Sheet As of Dec. 31 2017 Assets 2017 2016 Cash 431,000 339,000 Accounts Receivable 503.000 365,000 Inventories 289,000 300,000 Total Current Assets 1.223,000 7,004,000 Sweet...

  • Please list the formula and definition of each term Times interest earned = Free cash flow...

    Please list the formula and definition of each term Times interest earned = Free cash flow = Profitability ratios = Earnings per share = Price-earnings ratio = Gross profit rate = Profit margin = Return on assets = Asset turnover = Payout ratio = Return on common stockholders’ equity= Liquidity ratios measure Working capital = Current ratio = Current cash debt coverage = Inventory turnover = Days in inventory = Accounts receivable turnover = Average collection period = Solvency ratios=...

  • FIN Company: Balance Sheet as of December 31 ($ million) $40 Cash Account receivables Inventories Total...

    FIN Company: Balance Sheet as of December 31 ($ million) $40 Cash Account receivables Inventories Total current assets $40 $20 $100 $40 Account Payables ? Notes payable $160 Other current liabilities $310 Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total stockholders' equity $450 Total liabilities and equity $140 $114 ? Net fixed assets Total assets FIN Company: Income Statement for Year Ended December 31 ($ million) $800.0 Net sales Cost of goods sold (80% of net...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT