Following is a condensed unadjusted Trial Balance for SSA Hospital as at 31 December 2019. (amounts in thousands)

	Debit ($)	Credit ($)
Cash	1,600
Cash equivalent	500
Marketable securities	800
Patient Accounts Receivable	7,000
Allowance for uncollectible receivable		1,500
Medical and supplies inventories	13,000
Prepaid Insurance	50
Building and equipment	40,000
Accumulated depreciation for building and equipment		8,000
Accounts Payable		9,000
Accrued expenses		1,200
Estimated third party settlement (current due)		2,000
Long term debt		30,000
Mortgage for building		10,000
Unrestricted net assets, beginning of the year		28,000
Patient service revenue (gross)		75,000
Provision for contractual adjustment	6,000
Provision for charity care	2,000
Operating expenses	45,000
Depreciation expenses	2,000
Interest expenses	2,500
Provision for bad debt	1,500
Other expenses	3,000
Investment income		2,000
Rent Revenue		500
Gain/Loss on disposal of assets	400

Additional information:

The following transaction was not recorded in the trial balance:

1. Issued $2,000 bond payable at the end of year
2. 20% of prepaid insurance was used during the year
3. Billed the patient for the service performed $1,000 at the end of the year
4. The medical and supplies inventories at the of the year show a balance of $5,000
5. The depreciation expenses at the end of year is $500
6. Accrued operating expenses amounted to $40 was incurred at the end of the year

Additional information:

a. $4,000 of the principal long term debt was paid during the year

b. The current portion of long term debt due is $3,000

Required:

Based on the information given above, compute the following:

1. Operating gain
2. The excess of revenue over expenses
3. The unrestricted net asset balance at the end of the year
4. Current ratio
5. Number of days’ patient revenue in receivable
6. Number of days’ cash on hand
7. Operating margin
8. Long term debt to capitalization ratio
9. Debt service coverage
10. Times interest earned

Answer rating: 100% (QA)

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