CheckPoint: Ratio AnalysisResource: Table 4-2 on p. 71 of the textDue Date: Day

CheckPoint: Ratio AnalysisResource: Table 4-2 on p. 71 of the textDue Date: Day 4 [Individual forum]Compute the following ratios from Arcadia Hospitals 2005 financialstatements:o Current ratioo Total assetCompare these ratios with the 1999 median for all U.S. acute carehospitals listed in Table 4-2.Answer the following and explain your answer: What was thefinancial status of Arcadia in 2005?Compute the following ratios from Arcadia Hospitals 2005 financialstatements:o Asset/equityo Long-term debt/equityo Total marginExplain whether the ratios are leverage or profitability ratios. Ifa leverage ratio is it coverage or capital structure? What is thedifference between the two? If a profitability ratio discuss whyit is not completely satisfactory for measuring an organizationsprofitability. What can these ratios tell us about Arcadia?Post your computations comparisons and answers as a MicrosoftWord attachment.