healthcare finance

Practice Exercise 11–II: Solvency RatiosRefer to Doctors Smith and Brown’s financial statements presented in the preceding Chapter 10.Required1. Set up a worksheet for the solvency ratios.2. Compute these ratios for Doctors Smith and Brown. To do so, you will need one additional piece of information that is not present on the doctors’ statements: their maximum annual debt service is $22,200.Practice Exercise 11–II: Profitability RatiosRefer to Doctors Smith and Brown’s financial statements presented in the preceding Chapter 10.Required1. Set up a worksheet for the profitability ratios.2. Compute these ratios for Doctors Smith and Brown. All the necessary information is present on the doctors’ statements.[Hint: “Operating Income (Loss)” is also known as “Income from Operations.”]