Using the income statement and balance sheet examples provided, calculate the return on capital in 2013. Table
Question:
Using the income statement and balance sheet examples provided, calculate the return on capital in 2013.
Table 3–1 Hospital Income Statement
ABC Hospital | |
Income Statement | August 31, 2013 |
Inpatient revenue | $1,500,300,000 |
Outpatient revenue | $430,320,200 |
Total patient revenue | $1,930,620,200 |
Deductions, discounts, and allowances | ($1,000,000,000) |
Net patient revenues | $930,620,200 |
Total operating expenses | ($830,220,200) |
Operating income | $100,400,000 |
Other income (donations, contributions, gifts) | $5,200,500 |
Income from investments | $15,000,500 |
Government appropriations | $0 |
Auxiliary and nonpatient revenue | $3,000,000 |
Total nonpatient revenue | $23,201,000 |
Total other expenses | ($124,400,000) |
Net income or (loss) | ($799,000) |
Table 3–2 Hospital Balance Sheet
2013 Assets | (Millions) |
Current assets: | |
Cash and equivalents | $325 |
Short-term investments | $175 |
Accounts receivable, net | $550 |
Inventories | $250 |
Prepaid expenses | $50 |
Total current assets | $1,350 |
Long-term assets: | |
Land and buildings, net | $750 |
Property and equipment, net | $500 |
Investments | $200 |
Total long-term assets | $1,450 |
Total Assets | $2,800 |
Liabilities and Equity/Net Assets | |
Current liabilities: | |
Accounts payable | $360 |
Taxes and other payables | $40 |
Accrued liabilities | $80 |
Other short-term liabilities | $10 |
Total current liabilities | $490 |
Long-term liabilities: | |
Long-term debt | $180 |
Other long-term obligations | $20 |
Total long-term liabilities | $200 |
Total Liabilities | $690 |
Equity/net assets | $2,110 |
Total Liabilities and Net Assets | $2,800 |
Financial Accounting
ISBN: 9780078110825
2nd Edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann