About a comparative financial statement analysis

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Reference no: EM131275800

Suppose that two hospitals are identical in all ways except that Hospital N is relatively new while Hospital O is relatively old. Which of the following statements about a comparative financial statement analysis is most correct? (Hint: Think about the differences in the amount of net fixed assets [net plant and equipment] carried on the balance sheet and the amount of depreciation expense reported on the income statement.)

1) Hospital N will report higher net income.

2) Hospital N will have higher total-asset turnover.

3) Hospital N will have higher fixed-asset turnover.

4) Hospital N will have lower gross fixed assets.

5) None of the above statements is correct.

Reference no: EM131275800

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