Be sure to show your work on all math problems and provide sufficient detail on other to adequately answer the question.

1: (25 pts) Consider a hospital that is introducing a new service anticipated to have 1,025 patient visits per year at an average cost of $2,200 and average billed charges of $4,500. Determine the amount of gross revenue, contractual deductions, net patient revenue, and net operating income that would result given the payer mix and terms shown below.

2: (10 pts) Using the HCF Balance Sheet on page 226-227 in Table 9A-1, how could you determine the amount of debt principal that will be retired during the next fiscal year?

3: (10 pts) Using the same table as referenced in question 2, what is the net change in Current Assets from 20X6 to 20X7?

4: (10 pts) What are the titles of the four primary financial statements that are usually included in an audited financial report?

5: (10 pts) Using the same table referenced in question 2, would you say that HCF had a better or worse year from overall financial standpoint from 20X6 to 20X7? What is your answer based on?

Payer Type Estimated # of Payment per Case Patients Medicare Medicaid Payers with a hospital contract Payers without hospital contract Self-pay Patients Charity Care Patients 350 $ 175 $ 320 $ 90 2,000.00 1,750.00 3,100.00 95% of billed charges 10% of billed charges 65 25 $ 1025 1025 Additional Data Needed (from above): Anticipated new patients: Average cost: $ Average billed charges: $ 2,200.00 4,500.00 Payer Type Estimated # of Payment per Case Patients Medicare Medicaid Payers with a hospital contract Payers without hospital contract Self-pay Patients Charity Care Patients 350 $ 175 $ 320 $ 90 2,000.00 1,750.00 3,100.00 95% of billed charges 10% of billed charges 65 25 $ 1025 1025 Additional Data Needed (from above): Anticipated new patients: Average cost: $ Average billed charges: $ 2,200.00 4,500.00