CHAPTER $17$: FINANCIAL CONDITION ANALYSIS

Homework Problem $5\mathrm{.}1$

Calculate the following ratios based upon data from the The Heart Hospital financial statements.

Foreach ratio, provide abrief ratio analysis and comparative analysis.

$\begin{array}{cc}\text{I}\text{n}\text{d}\text{i}\text{c}\text{a}\text{t}\text{o}\text{r}\text{A}\text{n}\text{a}\text{l}\text{y}\text{s}\text{i}\text{s}\text{:}& \text{B}\text{r}\text{i}\text{e}\text{f}\text{l}\text{y}\text{e}\text{x}\text{p}\text{l}\text{a}\text{i}\text{n}\text{w}\text{h}\text{a}\text{t}\text{t}\text{h}\text{e}\text{i}\text{n}\text{d}\text{i}\text{c}\text{a}\text{t}\text{o}\text{r}\text{m}\text{e}\text{a}\text{n}\text{s}\end{array}$

RATIOS $$

The Heart Hospital

Statement of Income and Retained Earnings Year Ended December $31,2023($in thousands$)$

$\backslash$table$[[$Net patient service revenue,$$,51,000],[$Personnelexpense$,$$$,19,000],[$Medicals supplies and drugs,,$14,500],[$Other operating expenses,,$9,500],[$Interest expense,,$1,500],[$Depreciation$,,2,750],[$Totaloperating expenses,$$,47,250],[$Income from operations,,$3,750],[$Non$-$operating income,$$,3,500],[$Net income,$$,7,250],[\backslash$table$[[$Green Valley Healthcare, Inc.$],[$Balance Sheet$],[$Year Ended December $31,2023],[($in thousands$)]],,],[$Cash and equivalents,$$,8,500],[$Net patient accts receivable,,$4,100],[$Supplies inventory,,$1,230],[$Prepaids and other current assets,,$1,500],[$Totalcurrent assets,$$,15,330],[$Propertyand equipment,$$,50,000],[$Less accumulated depreciation,,$15,500],[$Net propertyand equipment,$$,34,500],[$Other assets,$$,900],[$Totalassets$,$$$,50,730],[$Accounts payable,$$,1,950],[$Accrued compensation and benefits,,$2,500],[$Other accrued liabilities,,$1,750],[$Current portion of long$-$term debt,,$2,100],[$Totalcurrent liabilities,$$,8,300],[$Long$-$term debt,$$,14,500],[$Total liabilities,$$,22,800],[$Owners$\text{'}$equity$,$$$,27,930],[$Totalliabilities & equity,$$,50,730]]$

Totalliabilities & equity