Horizontal, vertical, and ratio analyses. Exhibits 4.30a and 4.30b show the balance sheet and income statement for the 660-bed Williams Academic Medical Center for the years 20X0 and 20X1. Assume that...

Horizontal, vertical, and ratio analyses. Exhibits 4.30a and 4.30b show the balance sheet and income statement for the 660-bed Williams Academic Medical Center for the years 20X0 and 20X1. Assume that principal payments each year come to $5,500,000 and that adjusted discharges are 120,000 for 20X0 and 125,000 for 20X1.

a. Perform full horizontal and vertical analyses on the balance sheet.

b. Perform full horizontal and vertical analyses on the income statement.

c. Calculate every ratio described in the chapter for both years, and compare these ratios with the benchmarks (Exhibit 4.16a).

Discuss Williams’s current financial position and future outlook based on these results. Make the basis for the vertical analysis the year 20X0.