Debbie Jones is a practice administrator and clinic director for an outpatient medical practice clinic, A to
Question:
Debbie Jones is a practice administrator and clinic director for an outpatient medical practice clinic, A to Z Medical Clinic. She has worked for 2 years in this role. She wants to ask for a 5% raise from her previous year's salary of $120,000. At a recent executive leadership meeting she received the financial information in the table below about her contribution, etc. to the company.
Question #1:
Looking at the information below, calculate the current ratio.
Question #2:
Based on the answer to #1, does the medical clinic appear to be in sound financial position? Provide a rationale.
Question #3:
Do you believe Debbie should receive a raise of 5%? Support your answer using readings from this week and the financial information provided in the table.
TABLE
Assets 2013 2014
Cash 20,338 14,375
Accounts Receivable 60,869 82,381
Less Allowance for doubtful accounts -249 -1,235
Prepaid expenses 6,823 6,284
Total Current Assets 87,356 101,805
Buildings, Furniture and equipment 35,859 20,310
Less accumulated depreciation 4,791 4,064
Net long term asset 31,068 16,248
Other Assets 0 0
Total Assets 118,424 118,053
Liabilities & Equity 2013 2014
Retirement Plan Payable 5,886 4,528
Payroll taxes payable 6,416 5,545
Notes payable 560 3,943
Current Liabilities 12,862 14,061
Long-term debt 27,593 27,789
TOTAL LIABILITIES 40,455 41,850
EQUITY (fund balance) 77,969 76,203
TOTAL LIABILITIES AND EQUITY 118,424 118,053
Expert Answer:
Answer 1 The current ratio is calculated by dividing current assets by current ... View the full answer
Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
