Refer to Megatropolis Hospitals financial statements below for calculating the ratios requested in questions Megatropolis Hospital Statement of Operations For the Year Ended December 31, 2007 Revenues, Gains, Other Support Net patient service revenue ................................................$1,500,000.00 Other revenue ......................................................................$200,000.00 Total Revenue
Refer to Megatropolis Hospital’s financial statements below for calculating the ratios requested in questions
Megatropolis Hospital
Statement of Operations
For the Year Ended December 31, 2007
Revenues, Gains, Other Support
Net patient service revenue ................................................$1,500,000.00
Other revenue ......................................................................$200,000.00
Total Revenue ..................................................................$1,700,000.00
Expenses
Nursing Services ................................................................$1,200,000.00
Administrative Services ........................................................$200,000.00
Depreciation .........................................................................$100,000.00
Other Expenses ......................................................................$50,000.00
Total Expenses ..................................................................$1,550,000.00
Operating Income ................................................................$150,000.00
Investment Income ................................................................$50,000.00
Excess of revenues over expenses .......................................$200,000.00
Increase in Unrestricted Net Assets .....................................$200,000.00
Megatropolis Hospital
Balance Sheet
As of December 31, 2007 (2006 omitted)
Assets
Current Assets
Cash and cash equivalents ..................................................$50,000.00
Net patient receivables .....................................................$350,000.00
Total Current Assets .........................................................$400,000.00
Properties and Equipment
Gross properties and equipment .......................................$900,000.00
Less accumulated depreciation ........................................$475,000.00
Net Properties and Equipment .........................................$425,000.00
Total Assets .....................................................................$825,000.00
Liabilities and Net Assets
Current Liabilities
Accounts Payable ..........................................................200,000.00
Salaries Payable .............................................................$50,000.00
Total Current Liabilities ...............................................$250,000.00
Notes Payable .............................................................$200,000.00
Unrestricted Net Assets................................................ $375,000.00
Total Liabilities and Net Assets ...................................$825,000.00
1. What is Megatropolis Hospital’s operating margin?
2. What is Megatropolis Hospital’s day in accounts receivable?
3. What is Megatropolis Hospital’s long-term debt to net assets ratio?
4. What is Megatropolis Hospital’s age of plant?
5. What is Megatropolis Hospital’s fixed asset turnover ratio?
6. What are Megatropolis Hospital’s days of cash on hand?
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
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Interpreting and Analyzing Financial Statements
ISBN: 978-0132746243
6th edition
Authors: Karen P. Schoenebeck, Mark P. Holtzman