Manor Care, Inc. and Subsidiaries Computation of Ratio of Earnings to Fixed Charges (dollars in thousands) Aug Ytd 1991(A) 1992(A) 1993(A) 1994(A) 1995(A) 1996(A)) 1997(A) ------- ------- ------- ------- ------- -------- ------- INCOME FROM CONTINUING OPERATIONS BEFORE TAXES $33,746 $85,276 $87,449 $119,184 $129,831 $111,471 $33,866 PLUS: FIXED CHARGES (NET OF CAPITALIZED INTEREST) 42,245 43,774 36,311 28,903 24,376 32,978 9,831 ------ ------ ------ ------ ------ ------ ----- EARNINGS (AS DEFINED) $75,991 $129,050 $123,760 $148,087 $154,207 $144,449 $43,697 ====== ======== ======= ======= ======= ======= ====== INTEREST EXPENSE & AMORTIZATION OF DEBT DISCOUNT $41,061 $42,549 $34,988 $27,441 $22,769 $30,338 $9,142 RENT EXPENSE (INTEREST PORTION) 1,184 1,225 1,323 1,462 1,607 2,640 689 ------ ------ ------ ------ ------ ------ ----- TOTAL FIXED CHARGES NET OF CAPITALIZED INTEREST 42,245 43,774 36,311 28,903 24,376 32,978 9,831 CAPITALIZED INTEREST 2,534 346 1,009 631 1,803 3,100 1,365 ------ ------ ------ ------ ------ ------ ----- TOTAL FIXED CHARGES $44,779 $44,120 $37,320 $29,534 $26,179 $36,078 $11,196 ====== ====== ====== ====== ====== ====== ====== "EARNINGS" DIVIDED BY FIXED CHARGES 1.70x 2.92x 3.32x 5.01x 5.89x 4.00x 3.90x ======= ======= ======= ======= ======= ======= ======