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Goodfellow & Perkins LLP is a successful mid-tier accounting firm with a large range of clients across Texas. During 2025, Goodfellow & Perkins gained a new client, Brookwood Pines Hospital (BPH), a private, not-for- profit hospital. The fiscal year-end for BPH is June 30. Goodfellow & Perkins is performing the audit for the fiscal year-end June 30, 2026. Selected amounts from BPH's balance sheets as of June 30, 2026 and 2025 are Total current assets Total assets Total net assets 2026 2025 2024 $ 233,286 $ 225,962 $ 224,694 1,787,720 1,618,698 1,618,702 1,204,139 1,024,932 1,025,001 The comparative income statements for the years ending June 30, 2026 and 2025 are presented here. Brookwood Pines Hospital Income Statements (in thousands) Years Ended June 30 Revenue. Net patient service revenue Provision for uncollectible accounts Net patient service revenue after provision for uncollectible accounts Rental and other revenue Net assets released from donor restrictions and federal and state grants Total revenue Expenses Salaries and employee benefits Supplies Purchased services Depreciation and amortization Insurance Rent and utilities Repairs and maintenance Interest Texas hospital assessment. Other Total expenses Operating income Nonoperating gains (losses) Investment return. Change in fair value of certain investments Contribution of DeLaune unrestricted net ass Grants provided Other Total nonoperating gains, net Excess of revenues over expenses $ 2026 2025 791,572 $ 706,073 (33,675) (25,810) 757,897 680,263 42,727 4,541 805,165 726,645 377,895 146,172 89,774 47,858 17,430 15,218 14,722 7,351 17,227 21,324 754,971 50,194 109,212 6,254 41,975 4,407 (3,362) 1,630 113,734 344,360 126,633 79,391 45,630 18,132 13,935 14,563 8,874 14,081 21,151 686,750 39,895 25,951 (6,202) 64,995 (4,458) (489) 79,797 $ 163,928 $ 119,692 BPH provides medically necessary care to patients, regardless of their ability to pay. Both uninsured and underinsured patients are offered Calculate the return on net assets ratio for 2026 and 2025 and the percentage change in the ratio from 2025 to 2026. Evaluate Brookwood Pines Hospital's return on net assets ratio. The return on net assets ratio indicates that Brookwood Pines generated about 14.7 cents of for each dollar of The percentage from 2025 to 2026 indicates that the hospital is Goodfellow & Perkins LLP is a successful mid-tier accounting firm with a large range of clients across Texas. During 2025, Goodfellow & Perkins gained a new client, Brookwood Pines Hospital (BPH), a private, not-for- profit hospital. The fiscal year-end for BPH is June 30. Goodfellow & Perkins is performing the audit for the fiscal year-end June 30, 2026. Selected amounts from BPH's balance sheets as of June 30, 2026 and 2025 are Total current assets Total assets Total net assets 2026 2025 2024 $ 233,286 $ 225,962 $ 224,694 1,787,720 1,618,698 1,618,702 1,204,139 1,024,932 1,025,001 The comparative income statements for the years ending June 30, 2026 and 2025 are presented here. Brookwood Pines Hospital Income Statements (in thousands) Years Ended June 30 Revenue. Net patient service revenue Provision for uncollectible accounts Net patient service revenue after provision for uncollectible accounts Rental and other revenue Net assets released from donor restrictions and federal and state grants Total revenue Expenses Salaries and employee benefits Supplies Purchased services Depreciation and amortization Insurance Rent and utilities Repairs and maintenance Interest Texas hospital assessment. Other Total expenses Operating income Nonoperating gains (losses) Investment return. Change in fair value of certain investments Contribution of DeLaune unrestricted net ass Grants provided Other Total nonoperating gains, net Excess of revenues over expenses $ 2026 2025 791,572 $ 706,073 (33,675) (25,810) 757,897 680,263 42,727 4,541 805,165 726,645 377,895 146,172 89,774 47,858 17,430 15,218 14,722 7,351 17,227 21,324 754,971 50,194 109,212 6,254 41,975 4,407 (3,362) 1,630 113,734 344,360 126,633 79,391 45,630 18,132 13,935 14,563 8,874 14,081 21,151 686,750 39,895 25,951 (6,202) 64,995 (4,458) (489) 79,797 $ 163,928 $ 119,692 BPH provides medically necessary care to patients, regardless of their ability to pay. Both uninsured and underinsured patients are offered Calculate the return on net assets ratio for 2026 and 2025 and the percentage change in the ratio from 2025 to 2026. Evaluate Brookwood Pines Hospital's return on net assets ratio. The return on net assets ratio indicates that Brookwood Pines generated about 14.7 cents of for each dollar of The percentage from 2025 to 2026 indicates that the hospital is Goodfellow & Perkins LLP is a successful mid-tier accounting firm with a large range of clients across Texas. During 2025, Goodfellow & Perkins gained a new client, Brookwood Pines Hospital (BPH), a private, not-for- profit hospital. The fiscal year-end for BPH is June 30. Goodfellow & Perkins is performing the audit for the fiscal year-end June 30, 2026. Selected amounts from BPH's balance sheets as of June 30, 2026 and 2025 are Total current assets Total assets Total net assets 2026 2025 2024 $ 233,286 $ 225,962 $ 224,694 1,787,720 1,618,698 1,618,702 1,204,139 1,024,932 1,025,001 The comparative income statements for the years ending June 30, 2026 and 2025 are presented here. Brookwood Pines Hospital Income Statements (in thousands) Years Ended June 30 Revenue. Net patient service revenue Provision for uncollectible accounts Net patient service revenue after provision for uncollectible accounts Rental and other revenue Net assets released from donor restrictions and federal and state grants Total revenue Expenses Salaries and employee benefits Supplies Purchased services Depreciation and amortization Insurance Rent and utilities Repairs and maintenance Interest Texas hospital assessment. Other Total expenses Operating income Nonoperating gains (losses) Investment return. Change in fair value of certain investments Contribution of DeLaune unrestricted net ass Grants provided Other Total nonoperating gains, net Excess of revenues over expenses $ 2026 2025 791,572 $ 706,073 (33,675) (25,810) 757,897 680,263 42,727 4,541 805,165 726,645 377,895 146,172 89,774 47,858 17,430 15,218 14,722 7,351 17,227 21,324 754,971 50,194 109,212 6,254 41,975 4,407 (3,362) 1,630 113,734 344,360 126,633 79,391 45,630 18,132 13,935 14,563 8,874 14,081 21,151 686,750 39,895 25,951 (6,202) 64,995 (4,458) (489) 79,797 $ 163,928 $ 119,692 BPH provides medically necessary care to patients, regardless of their ability to pay. Both uninsured and underinsured patients are offered Calculate the return on net assets ratio for 2026 and 2025 and the percentage change in the ratio from 2025 to 2026. Evaluate Brookwood Pines Hospital's return on net assets ratio. The return on net assets ratio indicates that Brookwood Pines generated about 14.7 cents of for each dollar of The percentage from 2025 to 2026 indicates that the hospital is Goodfellow & Perkins LLP is a successful mid-tier accounting firm with a large range of clients across Texas. During 2025, Goodfellow & Perkins gained a new client, Brookwood Pines Hospital (BPH), a private, not-for- profit hospital. The fiscal year-end for BPH is June 30. Goodfellow & Perkins is performing the audit for the fiscal year-end June 30, 2026. Selected amounts from BPH's balance sheets as of June 30, 2026 and 2025 are Total current assets Total assets Total net assets 2026 2025 2024 $ 233,286 $ 225,962 $ 224,694 1,787,720 1,618,698 1,618,702 1,204,139 1,024,932 1,025,001 The comparative income statements for the years ending June 30, 2026 and 2025 are presented here. Brookwood Pines Hospital Income Statements (in thousands) Years Ended June 30 Revenue. Net patient service revenue Provision for uncollectible accounts Net patient service revenue after provision for uncollectible accounts Rental and other revenue Net assets released from donor restrictions and federal and state grants Total revenue Expenses Salaries and employee benefits Supplies Purchased services Depreciation and amortization Insurance Rent and utilities Repairs and maintenance Interest Texas hospital assessment. Other Total expenses Operating income Nonoperating gains (losses) Investment return. Change in fair value of certain investments Contribution of DeLaune unrestricted net ass Grants provided Other Total nonoperating gains, net Excess of revenues over expenses $ 2026 2025 791,572 $ 706,073 (33,675) (25,810) 757,897 680,263 42,727 4,541 805,165 726,645 377,895 146,172 89,774 47,858 17,430 15,218 14,722 7,351 17,227 21,324 754,971 50,194 109,212 6,254 41,975 4,407 (3,362) 1,630 113,734 344,360 126,633 79,391 45,630 18,132 13,935 14,563 8,874 14,081 21,151 686,750 39,895 25,951 (6,202) 64,995 (4,458) (489) 79,797 $ 163,928 $ 119,692 BPH provides medically necessary care to patients, regardless of their ability to pay. Both uninsured and underinsured patients are offered Calculate the return on net assets ratio for 2026 and 2025 and the percentage change in the ratio from 2025 to 2026. Evaluate Brookwood Pines Hospital's return on net assets ratio. The return on net assets ratio indicates that Brookwood Pines generated about 14.7 cents of for each dollar of The percentage from 2025 to 2026 indicates that the hospital is
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To calculate the return on net assets RONA ratio we need to divide the excess of revenues over expen... View the full answer
Related Book For
Auditing A Practical Approach with Data Analytics
ISBN: 978-1119401742
1st edition
Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton
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