Assignment Introduction

Asslgnument Directions

This assignment will give you practice with calculating ratios and comparing and contrasting different types of financial data.

Instructions:

Review the "Ratio Analysis Practice Problem" to understand how ratios were calculated with $2019$ data. Then, using the financial statements lor Bobrat Hospital in Chapter $3,$ calculate the following ratios for $2020$:

Current ratio

Collection period ratio

bays cash on hand, all sources, ratio

Days cash on hand, short$-$term sources, ratio

Average payment period ratio

Operating margin ratio

Total margin ratio

Return on net assets ratio

Total asset tumover ratio

Average age of plant ratio

Fixed asset turnover ratio

Current asset turnover ratio

Inventory turnover ratio

Net asset financing ratio

Long$-$term debt to capitalization ratio

Debt service coverage ratio

Cash flow to debt ratio

Indicate whether each $2020$ ratio is better or worse than the $2019$ ratio.

$3.$ Indicate whether the $2020$ ratios are better or worse than the benchmarks using the Optum medians for each ratio $($see exhibit $3\mathrm{.}5$ in the text$).$

Examine the $2019$ and $2020$ ratios and assess the hospital's financial performance. Is the hospital in better or worse financial shape in $2020$ as compared to $2019?$

$5$ If you were COO of Bobcat Hospital, how would you use this ratio data to make decisions for $2021?$

Details: Use Excel or a table in Word to organize your answers. Use a combination of numerical and narrative answers.

$\backslash$table$[[,2020,2019],[$ASSETS$],[\backslash$table$[[$Current assets$],[$Cash$]],$$$124,$$$280$