Assignment
Listed below are the balance sheet and statement of operations for Wynn Memorial Nursing Home for 2008 and 2009.
1. Compute Wynn Memorial Nursing Home's current ratio.
2. Compute Wynn Memorial Nursing Home's acid (or acid-test) ratio.
3. Compute Wynn Memorial Nursing Home's days in accounts receivable.
4. Compute Wynn Memorial Nursing Home's average payment period.
5. Compute Wynn Memorial Nursing Home's long-term debt to net assets ratio.
6. Compute Wynn Memorial Nursing Home's net assets to total assets ratio.
7. Compute Wynn Memorial Nursing Home's total asset turnover ratio.
8. Compute Wynn Memorial Nursing Home's fixed asset turnover ratio.
9. Compute Wynn Memorial Nursing Home's return on total assets.
10. Compute Wynn Memorial Nursing Home's operating margin.
Listed below are the industry standards of the above ratios for Wynn Memorial's peer group.
Use this information as you answer problems 11 to 14.
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Nursing Home Financial Ratios-Industry Median
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Current ratio
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1.98
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|
Acid test ratio
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0.20
|
|
Days in accts receivable
|
67.19
|
|
Average payment period
|
56.13
|
|
Total asset turnover
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1.02
|
|
Fixed asset turnover
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2.20
|
|
Operating margin
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0.02
|
|
Return on total assets
|
0.04
|
|
Long-term debt to net assets
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0.62
|
|
Net assets to total assets
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0.53
|
11. Comment on Wynn Memorial's liquidity. Cite at least one meaningful ratio to support your observations.
12. Comment on Wynn Memorial's efficiency in its use of assets. Cite at least one meaningful ratio to support your observations.
13. Comment on Wynn Memorial's profitability. Cite at least one meaningful ratio to support your observations.
14. Comment on Wynn Memorial's capital structure. Cite at least one meaningful ratio to support your observations.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.