SOLUTION: FM 0007 Walden University Analyze Financial Data Paper

Hello buddy. Could you kindly provide part two spreadsheet, which provides cash-flow data (costs and benefits) Running head: ANALYZE FINANCIAL DATAAnalyze Financial DataStudent’s NameInstitutional Affiliation1ANALYZE FINANCIAL DATA2Part I: Analyze Organizational Financial DataTrend Analysis20092010201120122013Net sales$ 8,609.00$ 9,233.00$ 10,079.00$ 10,417.00$ 11,430.00$ 8,582.00$ 9,143.00$ 9,673.00$ 9,821.00$ 10,631.00$ 27.00$ 90.00$ 406.00$ 596.00$ 799.00$ 181.00$ 285.00$ 651.00$ 816.00$ 1,089.00Total Operating ExpensesOperating IncomeNet incomeFive year trend AnalysisNet salesTotal Operating ExpensesOperating IncomeNet income$14,000.00$1,200.00$12,000.00$1,000.00$10,000.00$800.00$8,000.00$600.00$6,000.00$400.00$4,000.00$200.00$2,000.00$-$20092010201120122013The table and graphical representation indicate the five-year trend of net sales, operatingincome, total operating expenses, and net income. From the above table, net sales depicted anupward increase from 2009 to 2013. Accordingly, the total operating expenses, operatingincome, and net income indicated an upward rise for the past five years. The trend analysis aidsin indicating the company’s financial performance, thereby showing whether the firm is makingloss or profits from the available data.ANALYZE FINANCIAL DATA3Five Year Analysis of:Profit Margin Ratio20092010201120122013Profit MarginNet Income/salesNet IncomeSales$ 181.00$ 285.00$ 651.00$ 816.00$ 8,609.00$ 9,233.00$ 10,079.00$ 10,417.00$$ 11,430.001,089.002.10%3.09%6.46%7.83%9.53%The table above shows a steady increase in profit margin from 2009 to 2013. The companycontinued to record an increase in profit margin accounting for 9.53% in 2013.Asset Turnover RatioAssets Turnover Ratio20092010201120122013Sales/total assetsSales$ 8,609.00$ 9,233.00$ 10,079.00$ 10,417.00$ 11,430.00Total assets$ 7,350.00$ 7,952.00$$$1.171.168,476.001.199,145.001.149,847.001.16The asset turnover ratio depicted a slight variation with an increase and decrease in subsequentyears. However, the ratio increases slightly from 1.14 in 2012 to 1.16 in 2013. The ratio of morethan one indicates that the company is efficiently managing its assets.Return on Assets20092010201120122013Return on assetsNet income available to common stockholders/total assetsNet income$181.00$285.00$651.00$816.00$1,089.00total assets$7,350.00$7,952.00$8,476.00$9,145.00$9,847.002.46%3.58%7.68%8.92%The ROA significantly increased from 2.46% in 20099 to 11.06% in 2013. He significantincrease in ROA depicts that the organization can generate returns on its investments.11.06%ANALYZE FINANCIAL DATA4Return on Net Worth20092010201120122013Return on Net worthNet income/Shareholder’s equityNet income$181.00$285.00$651.00$816.00$1,089.00Shareholder’s equity$4,300.00$4,585.00$4,521.00$4,978.00$5,413.004.21%6.22%14.40%16.39%20.12%The return on net worth increased significantly from 4.21% in 2009 to 20.12% in 2013. Theincrease indicates that the organization uses the shareholder’s money effectively to generateprofits and grow the enterprise. Therefore, the above ratios depict Jiranna Healthcare as a healthyand profitable organization.5-Year Current Ratio, Day’s Cash on Hand, and Working CapitalCurrent Ratio20092010201120122013Current ratioCurrent assets/current liabilitiesCurrent assets$ 1,830.00$ 1,912.00$ 2,176.00$ 2,595.00$ 3,187.00$ 650.00$ 587.00$ 655.00$ 667.00$ 684.002.823.263.323.894.66Current liabilitiesThe current ratio increased from 2009 to 2013.Day’s Cash on Hand2009201020112012Day’s cash on hand(Unrestricted Cash & Equivalents x 365 Days) / (Total Operating Expenses ‐ Annual Depreciation)Unrestricted Cash & Equivalents x$ 30.00$ 45.00$ 50.00$ 75.00365 Days*365$ 10,950.00$ 16,425.00$ 18,250.00$ 27,375.00Total operating expense$ 8,582.00$ 9,143.00$ 9,673.00$ 9,821.001.281.801.892.79The day’s cash on hand indicates an increase from 2009 to 2013.2013$ 88.00$ 32,120.00$ 10,631.003.02ANALYZE FINANCIAL DATA5Working Capital20092010201120122013Working Capitalcurrent assets-current liabilitiescurrent assets$ 1,830.00$ 1,912.00$ 2,176.00$ 2,595.00$ 3,187.00current liabilities$ 650.00$ 587.00$ 655.00$ 667.00$ 684.00$ 1,830.00$ 1,912.00$ 2,176.00$ 2,595.00$ 3,187.00Working capital increased from 2009 to 2013. The above data indicates that the company hasadequate liquid to pay its debts using current assets.5-Year Debt Ratio and Times Interest Earned RatioDebt Ratio2009Debt ratioTotal debt/Total assetsTotal DebtTotal assets$ 3,050.00$ 7,350.000.412010$ 3,587.00$ 7,952.000.452011$ 3,955.00$ 8,476.000.472012$ 4,167.00$ 9,145.000.462013$ 4,434.00$ 9,847.000.45The table above indicates a slight increase and decrease in debt ratio. The low debt ratio of lessthan 0.5 indicates a stale business.Times Interest Earned Ratio20092010201120122013Times Interest Earned RatioEBIT/Interest expenseEBIT$ 27.00$ 90.00$ 406.00$ 596.00$ 799.00Interest expense$ 142.00$ 146.00$ 154.00$ 179.00$ 198.000.190.622.643.334.04The times interest earned ratio increases from 0.19 in 2009 to 4.04 in 2013. The higher interestrate indicates that the company can pay its interest before EBIT. The organization has adequatemoney to meet its long-term liabilities.ANALYZE FINANCIAL DATA6DuPont Analysis20092010201120122013Dupont Analysis(Profit margin) (Total assets turnover) (Equity multiplier)Equity MultiplierTotal assets/common equityTotal Asset$ 7,350.00$ 7,952.00$ 8,476.00$ 9,145.00$ 9,847.00Common equity$ 4,300.00$ 4,585.00$ 4,521.00$ 4,978.00$ 5,413.001.711.731.871.841.822.10%3.09%6.46%7.83%9.53%1.171.161.191.141.164.21%6.22%14.40%16.39%20.12%profit marginTotal Assets turnoverThe Dupont analysis indicates an increase in ROE, which has been maintained by an increase inprofit margin, asset turnover, and using the assets more proficiently.RecommendationFrom the above data analysis, Arizona Health Services (AHS) should consider acquiringJiranna Hospital because it has positive financial outcomes. The company recorded increased netincome and profit margin, including increased ROE, thereby depicting the management’s abilityto manage increase returns from profit margin and asset turnover.2009201020112012$8,609.00 $9,233.00 $10,079.00 $10,417.00$8,582.00 $9,143.00 $9,673.00 $9,821.00$27.00 $90.00 $406.00 $596.00$181.00 $285.00 $651.00 $816.00Net salesTotal Operating ExpensesOperating IncomeNet income2009Net salesTotal Operating ExpensesOperating IncomeNet incomeProfit MarginNet Income/salesNet IncomeSales$$$$$$8,609.008,582.0027.00181.002010$$$$9,233.009,143.0090.00285.002011$$$$20092010181.00 $8,609.00 $2.10%285.00 $9,233.00 $3.09%200920108,609.00 $7,350.00 $1.179,233.00 $7,952.00 $1.162009201010,079.009,673.00406.00651.002012$$$$2011651.00 $10,079.00 $6.46%10,417.009,821.00596.00816.002012816.0010,417.007.83%Assets Turnover RatioSales/total assetsSalesTotal assets$$Return on assetsNet income available to common stockholders/total assetsNet income$181.00 $285.00 $total assets$7,350.00 $7,952.00 $2.46%3.58%2009Return on Net worthNet income/Sharehodler’s equity2010201110,079.00 $8,476.00 $1.192011651.00 $8,476.00 $7.68%2011201210,417.009,145.001.142012816.009,145.008.92%2012Net incomeSharehodler’s equity$$Current ratioCurrent assets/current liabilitiesCurrent assets$Current liabilities$181.00 $4,300.00 $4.21%285.00 $4,585.00 $6.22%651.00 $4,521.00 $14.40%2009201020111,830.00 $650.00 $2.821,912.00 $587.00 $3.262,176.00 $655.00 $3.32200920102011816.004,978.0016.39%20122,595.00667.003.892012Day’s cash on hand(Unrestricted Cash & Equivalents x 365 Days) / (Total Operating Expenses ‐ Annual Depreciation)Unrestricted Cash & Equivalents$ x 365 Days30.00 $45.00 $50.00 $75.00*365$ 10,950.00 $ 16,425.00 $ 18,250.00 $ 27,375.00Total operrating expense$8,582.00 $9,143.00 $9,673.00 $9,821.001.281.801.892.79Working Capitalcurrent assets-current liabilitiescurrent assets$current liabilities$$Debt ratioTotal debt/Total assetsTotal DebtTotal assets$$2009201020111,830.00 $650.00 $1,830.00 $1,912.00 $587.00 $1,912.00 $2,176.00 $655.00 $2,176.00 $2009201020113,050.00 $7,350.00 $0.413,587.00 $7,952.00 $0.453,955.00 $8,476.00 $0.4720092010201127.00 $142.00 $0.1990.00 $146.00 $0.62406.00 $154.00 $2.6420092010201120122,595.00667.002,595.0020124,167.009,145.000.462012Times Interest Earned RatioEBIT/Interest expenseEBITInterest expense$$Dupont Analysis(Profit margin) (Total assets turnover) (Equity multiplier)Equity MultiplierTotal assets/common equityTotal Asset$7,350.00 $7,952.00 $8,476.00 $596.00179.003.3320129,145.00Common equityprofit marginTotal Assets turnover$4,300.00 $1.712.10%1.174.21%4,585.00 $1.733.09%1.166.22%4,521.00 $1.876.46%1.1914.40%4,978.001.847.83%1.1416.39%2013$11,430.00$10,631.00$799.00$1,089.00Five year trend AnalysisNet salesTotal Operating ExpensesOperating IncomeNet income$14,000.00$1,200.00$12,000.00$1,000.00$10,000.002013$$$$11,430.0010,631.00799.001,089.00$800.00$8,000.00$600.00$6,000.00$400.00$4,000.00$200.00$2,000.00$-$20092013$$1,089.0011,430.009.53%2013$$11,430.009,847.001.162013$$1,089.009,847.0011.06%20132010201120122013$$1,089.005,413.0020.12%2013$$3,187.00684.004.662013$$$88.0032,120.0010,631.003.022013$$$3,187.00684.003,187.002013$$4,434.009,847.000.452013$$799.00198.004.042013$9,847.00$5,413.001.829.53%1.1620.12%Net income$1,200.00$1,000.00$800.00$600.00$400.00$200.00$-Outlinea. Part I: Analyze Organizational Financial Datai.Trend Analysisii.Five Year Analysis of:iii.5-Year Current Ratio, Day’s Cash on Hand, and Working Capitaliv.DuPont Analysisv.Recommendationb. Part 2i.Net present value (NPV)ii.Internal rate of return (IRR)iii.Modified internal rate of return (MIRR)iv.Payback periodv.Discounted payback periodc. Part 3kindly review and do not hesitate to get in touch Running head: ANALYZE FINANCIAL DATAAnalyze Financial DataStudent’s NameInstitutional Affiliation1ANALYZE FINANCIAL DATA2Part I: Analyze Organizational Financial DataTrend AnalysisFive year trend AnalysisNet salesOperating IncomeNet income$14,000.00$1,200.00$12,000.00$1,000.00$10,000.00$800.00$8,000.00$600.00$6,000.00$400.00$4,000.00$200.00$2,000.00$-$20092010201120122013The table and graphical representation indicate the five-year trend of net sales, operatingincome, total operating expenses, and net income. From the above table, net sales depicted anupward increase from 2009 to 2013. Accordingly, the total operating expenses, operatingincome, and net income indicated an upward rise for the past five years. The trend analysis aidsANALYZE FINANCIAL DATA3in indicating the company’s financial performance, thereby showing whether the firm is makingloss or profits from the available data.Five Year Analysis of:Profit Margin RatioThe table above shows a steady increase in profit margin from 2009 to 2013. The companycontinued to record an increase in profit margin accounting for 9.53% in 2013.Asset Turnover RatioThe asset turnover ratio depicted a slight variation with an increase and decrease in subsequentyears. However, the ratio increases slightly from 1.14 in 2012 to 1.16 in 2013. The ratio of morethan one indicates that the company is efficiently managing its assets.Return on AssetsANALYZE FINANCIAL DATA4The ROA significantly increased from 2.46% in 20099 to 11.06% in 2013. He significantincrease in ROA depicts that the organization can generate returns on its investments.Return on Net WorthThe return on net worth increased significantly from 4.21% in 2009 to 20.12% in 2013. Theincrease indicates that the organization uses the shareholder’s money effectively to generateprofits and grow the enterprise. Therefore, the above ratios depict Jiranna Healthcare as a healthyand profitable organization.5-Year Current Ratio, Day’s Cash on Hand, and Working CapitalCurrent RatioThe current ratio increased from 2009 to 2013.Day’s Cash on HandANALYZE FINANCIAL DATAThe day’s cash on hand indicates an increase from 2009 to 2013.Working CapitalWorking capital increased from 2009 to 2013. The above data indicates that the company hasadequate liquid to pay its debts using current assets.5-Year Debt Ratio and Times Interest Earned RatioDebt RatioThe table above indicates a slight increase and decrease in debt ratio. The low debt ratio of lessthan 0.5 indicates a stale business.Times Interest Earned Ratio5ANALYZE FINANCIAL DATA6The times interest earned ratio increases from 0.19 in 2009 to 4.04 in 2013. The higher interestrate indicates that the company can pay its interest before EBIT. The organization has adequatemoney to meet its long-term liabilities.DuPont AnalysisThe Dupont analysis indicates an increase in ROE, which has been maintained by an increase inprofit margin, asset turnover, and using the assets more proficiently.RecommendationFrom the above data analysis, Arizona Health Services (AHS) should consider acquiringJiranna Hospital because it has positive financial outcomes. The company recorded increased netincome and profit margin, including increased ROE, thereby depicting the management’s abilityto manage increase returns from profit margin and asset turnover.ANALYZE FINANCIAL DATA7Part II: Case Study #2Net CashflowsNurse Triage Salaries$Year 0523,800Year 1$ 549,990Year 2$ 577,490Year 3$ 606,364Year 4$ 636,682Year 5$ 668,516Forecasted ER Cost ReductionsNew IT Specialist’s SalaryCosts of Facility RenovationsNecessary Capital EquipmentPurchasesNet Cash Flow:$$$$400,000150,00030,000117,000$ 800,000$ 154,500$ $ 3,510$ 848,000$ 159,135$ $ 3,510$ 900,577$ 163,909$$ 3,510$ 955,512$ 168,826$ $ 3,510$ 1,013,798$ 173,891$ $ 3,510$ 92,000$ 107,865$ 126,794$ 146,494$ 167,881$ (420,800)The net cash flows, in this case, included deducting the inflows from the cashflows. From theabove table, the cashflows will increase from year 1 to year 5.Net Present ValueNurse Triage SalariesForecasted ER Cost ReductionsNew IT Specialist’s SalaryCosts of Facility RenovationsNecessary Capital EquipmentPurchasesNet Cash Flow:Net Present ValueYear 0$ 523,800Year 1$ 549,990Year 2$ 577,490Year 3$ 606,364Year 4$ 636,682Year 5$ 668,516$$$$$ 800,000$ 154,500$ $ 3,510$ 848,000$ 159,135$ $ 3,510$ 900,577$ 163,909$$ 3,510$ 955,512$ 168,826$ $ 3,510$ 1,013,798$ 173,891$ $ 3,510$ 92,000$ 82,883$ 107,865$ 87,546$ 126,794$ 92,711$ 146,494$ 96,500$ 167,881$ 99,629400,000150,00030,000117,000$ (420,800)$ (420,800)With 11% cost of capital, the net present value for the project generated by this investmentincreased from year 1 to year 5.Internal Rate of Return (IRR)The sum of net present values for the cash flows at 11%== (420,800) +($ 82,883+$ 87,546+$ 92,711+$ 96,500+$ 99,629)= (420,800) + $ 459,269ANALYZE FINANCIAL DATA8= $ 38,468.55Therefore, using two rates of 11% and 16%, the NPV at 16% isNurse Triage Salaries$Year 0523,800Year 1$ 549,990Year 2$ 577,490Year 3$ 606,364Year 4$ 636,682Year 5$ 668,516Forecasted ER Cost ReductionsNew IT Specialist’s SalaryCosts of Facility RenovationsNecessary Capital EquipmentPurchasesNet Cash Flow:Net Present Value…

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