? Compute the following ratios from Arcadia Hospital?s 2005 financial statements: ? Current ratio ? Total asset ? Compare these ratios with the 1999 median for all U.S. acute care hospitals: Current ratio 2.07 Inventory turnover 50.35 Total asset turnover 1.01 Days in accounts receivable (collection period) 74.26 Debt financing percentage 43.66 Long-term debt to equity (percent) 31.16 Times interest earned 2.37 Cash flow to total debt (percent) 15.48 Return on assets 2.01 Return on equity 5.46 ? Answer the following and explain your answer: What was the financial status of Arcadia in 2005? ? Compute the following ratios from Arcadia Hospital?s 2005 financial statements: ? Asset/equity ? Long-term debt/equity ? Total margin ? Explain whether the ratios are leverage or profitability ratios. If a leverage ratio, is it coverage or capital structure? What is the difference between the two? If a profitability ratio, discuss why it is not completely satisfactory for measuring an organization?s profitability. What can these ratios tell us about Arcadia?
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