Problem:
Park Ridge Homecare's financial statements are presented in Exhibits 13.1, 13.2, and 13.3. In the chapter, we calculate selected ratios for 2012.
Requirement:
Question 1: Calculate the business's financial ratios for 2011. Assume that Park Ridge had $18,000 in lease payments in 2011. (Use the ratio analysis discussion to identify the applicable ratios.)
Question 2: Interpret the ratios. For the analysis, assume that the industry average data presented in the ratio analysis section is valid for 2011.
Note: Provide support for rationale.