Reference no: EM133392599

Assignment:

1. One example of an asset management ratio is the inventory turnover ratio. It is defined as revenues divided by inventories. Would this ratio be more important for a medical device manufacturer or a hospital management company? Explain your answer.

2. Assume that two companies that operate walk-in clinics both have the same December year end, but one is based in Aspen (a winter resort town), while the other operates on Nantucket Island (a summer destination). Would this difference in location lead to problems in a comparative analysis? Would the financial statements be different even if both are walk-in clinics? Explain.

3. What is the DuPont equation? How could DuPont analysis be used to identify possible actions to help boost profitability?

4. Go on the internet and choose a specific hospital and research its financial statements (For example: search for "Financial Statement of Mount Sinai").1. Identify the organization in the first line of your posting. Do not screenshot the financial statements!

• Describe the asset categories, liabilities, and equity sections of the Balance Sheet of the organization. What are the current assets, long term assets, current liabilities and long term liabilities?
• Describe the major sections and the items under each section of the Statement of Cash Flows of the organization.

5. Explain how ratio analysis can be used to help interpret balance sheet data.