Following is a condensed unadjusted Trial Balance for SSA Hospital as at 31 December 2019. (amounts in
Question:
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:
- Issued $2,000 bond payable at the end of year
- 20% of prepaid insurance was used during the year
- Billed the patient for the service performed $1,000 at the end of the year
- The medical and supplies inventories at the of the year show a balance of $5,000
- The depreciation expenses at the end of year is $500
- 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:
- Operating gain
- The excess of revenue over expenses
- The unrestricted net asset balance at the end of the year
- Current ratio
- Number of days’ patient revenue in receivable
- Number of days’ cash on hand
- Operating margin
- Long term debt to capitalization ratio
- Debt service coverage
- Times interest earned