1. Using the information below, determine the Days Cash on Hand for WTX Hospital:
Cash and equivalents: $12,250
Short-term investments: $8,500
Net fixed assets: $278,000
Accounts receivable: $62,500
Wages & salaries: $125,000
Administrative costs: $25,000
Supplies: $10,750
Insurance: $7,250
Depreciation: $12,350
Notes payable: $18,750
Net Assets (equity): $62,500
A. 26.6
B. 28.2
C. 24.8
D. 38.0
E. 45.1
2. A fire destroyed a large percentage of the financial records of Carter Health System. You have the task of piecing together information to prepare a financial report. You find the profit margin to be 6.5 percent. If sales were $4 million on total assets of $3 million, and the amount of debt financing was $800,000, what was Carter's return on equity (ROE)?
A. 11.8 percent
B. 16.0 percent
C. 18.2 percent
D. 20.6 percent
E. 12.5 percent