Brief explanation of the following:

a) the difference between the ratios mentioned below;

b) what each ratio conveys to hospital administrators; 

c) which financial statement would you use to get the data to complete each ratio; and, 

d) define if you would need any other information to provide a status of the operation to the hospital COO (Hint: note that it is the Chief Operations Officer who you are meeting with).

Transcribed Image Text:

Fixed Asset Turnover Total revenue Net fixed assets TA turnover = Total revenue Total assets $117,476 $119,998 $117,476 $151,278 = 0.98 times = = 0.78 times Fixed Asset Turnover Total revenue Net fixed assets TA turnover = Total revenue Total assets $117,476 $119,998 $117,476 $151,278 = 0.98 times = = 0.78 times

Answer rating: 100% (QA)

a The ratios provided are Fixed Asset Turnover and Total Asset Turnover Here is the difference between the two Fixed Asset Turnover This ratio indicat... View the full answer