Instructions: Using the Case hospital balance sheet and statement of operations (2017 data only), complete the...

  

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Instructions: Using the Case hospital balance sheet and statement of operations (2017 data only), complete the calculations for the financial ratios below using excel formulas. Plug the appropriate numbers (from the financial tables) or formula for intermediary calculations into the yellow cells, then enter formula for calculation into the blue cells. Case Hospital Balance Sheet (in thousands) ASSETS Current Assets Cash Casn Temporary investments Accounts receivables (net) Inventory Prepaid expenses Total Current Assets Noncurrent assets Property, plant and equipment Accumulated depreciation Net property, plant and equipment Long-term investments other noncurrent assets Total noncurrent assets Total Assets LIABILITES Current liabilities Accounts payable Notes payable Accrued expenses payable Deferred revenues Estimated third-party adjustments Current portion of long-term debt Total current liabilities Total liabilities S $ INET ASSETS $ $ S S S S S S S S S S S S Noncurrent liabilities Long-term debt, less current portion $ $ S $ $ S 2017 124 S 280 45 S 30 3,536 S 3,717 175 S 140 32 S 40 3,912 S 4,207 6,980 S (1,730) S 5,250 $ 609 S 113 S 5.972 $ 1016 302 S 345 S 6,580 (1,660) 4,920 990 109 10,939 9,884 S 15,146 370 335 408 871 S 10 $ 15 137 S 224 184 S 178 1,849 S 1,530 3,500 3,600 S 5,449 $ 5,030 S Case Hospital Statement of Operations (in thousands) REVENUES Gross patient revenue Provision for contractual adjustments Provision for charity care Net patient services revenue Provision for bad debt allowance Net patient services revenue less bad debt Premium revenue Other operating revenue Total operating revenue EXPENSES Salaries, wages, and benefits Supplies, drugs, purchase services Depreciation and amortization Interest Total operating expenses OPERATING INCOME NONOPERATING INCOME Investment income EXCESS OF REVENUE OVER EXPENSES CHANGES IN NET ASSETS Unrestricted net assets Temporarily restricted net assets Permanently restricted net assets Total changes in net assets S S $ 13,031 $ S (4,209) $ $ (420) S 8,402 S (600) $ 7,802 S 400 S 440 S 8,642 S D S S S S $ S $ $ S $ $ $ 2017 $ S S $ 4,980 S 3,080 S 471 S 113 S 8,644 $ (2) S 95 $ 93 $ 1016 12,610. (4,083) (408) 8,119 (4,763) 7,643 447 8,090 5,278 2.956 443 109 8,786 (696) 85 (611) 3,285 S 3,896 700 700 S 400 S 600 4,385 $ 5,196 LIQUIDITY RATIOS Current Ratio = Total current assets/Total current liabilities > Measures ability to meet short-term obligations. Current Ratio = Days in accounts receivable = Net receivables/ (net patient services revenue /365) > A ratio of how quickly a hospital is converting is receivables into cash. Days in AR = PROFITABILITY 1 Operating margin = (Operating income / Total operating revenue) x 100 > Reflects profit from only operations. Operating margin= 1 Total margin = (Excess of revenues over expenses/Total operating revenue) x 100 > Reflects profits from both operations and nonoperations (typically investment income) Total margin= Return on assets (%) - (Excess of revenue overs expenses / Net assets) x 100 > Basic measure of profit in relationship to investment ROA (%) = ASSET EFFICIENCY Current asset turnover= (total operating revenue + other income) / Total current assets > Basic measure of how efficiently assets are used in relation to making revenue Cur asset turnover = / CAPITAL STRUCTURE Median Ratios 2.18 111.6 0.75 4.10 7.30 3.48 Debt service coverage = (Escess of revenues over expenses + Depreciation exp. + Interest exp.)/ (Debt principal pmnt + Interest pmnts) > Measures ability to meet long-term debt obligations. Debt serivce cov. = 2.680 Instructions: Using the Case hospital balance sheet and statement of operations (2017 data only), complete the calculations for the financial ratios below using excel formulas. Plug the appropriate numbers (from the financial tables) or formula for intermediary calculations into the yellow cells, then enter formula for calculation into the blue cells. Case Hospital Balance Sheet (in thousands) ASSETS Current Assets Cash Casn Temporary investments Accounts receivables (net) Inventory Prepaid expenses Total Current Assets Noncurrent assets Property, plant and equipment Accumulated depreciation Net property, plant and equipment Long-term investments other noncurrent assets Total noncurrent assets Total Assets LIABILITES Current liabilities Accounts payable Notes payable Accrued expenses payable Deferred revenues Estimated third-party adjustments Current portion of long-term debt Total current liabilities Total liabilities S $ INET ASSETS $ $ S S S S S S S S S S S S Noncurrent liabilities Long-term debt, less current portion $ $ S $ $ S 2017 124 S 280 45 S 30 3,536 S 3,717 175 S 140 32 S 40 3,912 S 4,207 6,980 S (1,730) S 5,250 $ 609 S 113 S 5.972 $ 1016 302 S 345 S 6,580 (1,660) 4,920 990 109 10,939 9,884 S 15,146 370 335 408 871 S 10 $ 15 137 S 224 184 S 178 1,849 S 1,530 3,500 3,600 S 5,449 $ 5,030 S Case Hospital Statement of Operations (in thousands) REVENUES Gross patient revenue Provision for contractual adjustments Provision for charity care Net patient services revenue Provision for bad debt allowance Net patient services revenue less bad debt Premium revenue Other operating revenue Total operating revenue EXPENSES Salaries, wages, and benefits Supplies, drugs, purchase services Depreciation and amortization Interest Total operating expenses OPERATING INCOME NONOPERATING INCOME Investment income EXCESS OF REVENUE OVER EXPENSES CHANGES IN NET ASSETS Unrestricted net assets Temporarily restricted net assets Permanently restricted net assets Total changes in net assets S S $ 13,031 $ S (4,209) $ $ (420) S 8,402 S (600) $ 7,802 S 400 S 440 S 8,642 S D S S S S $ S $ $ S $ $ $ 2017 $ S S $ 4,980 S 3,080 S 471 S 113 S 8,644 $ (2) S 95 $ 93 $ 1016 12,610. (4,083) (408) 8,119 (4,763) 7,643 447 8,090 5,278 2.956 443 109 8,786 (696) 85 (611) 3,285 S 3,896 700 700 S 400 S 600 4,385 $ 5,196 LIQUIDITY RATIOS Current Ratio = Total current assets/Total current liabilities > Measures ability to meet short-term obligations. Current Ratio = Days in accounts receivable = Net receivables/ (net patient services revenue /365) > A ratio of how quickly a hospital is converting is receivables into cash. Days in AR = PROFITABILITY 1 Operating margin = (Operating income / Total operating revenue) x 100 > Reflects profit from only operations. Operating margin= 1 Total margin = (Excess of revenues over expenses/Total operating revenue) x 100 > Reflects profits from both operations and nonoperations (typically investment income) Total margin= Return on assets (%) - (Excess of revenue overs expenses / Net assets) x 100 > Basic measure of profit in relationship to investment ROA (%) = ASSET EFFICIENCY Current asset turnover= (total operating revenue + other income) / Total current assets > Basic measure of how efficiently assets are used in relation to making revenue Cur asset turnover = / CAPITAL STRUCTURE Median Ratios 2.18 111.6 0.75 4.10 7.30 3.48 Debt service coverage = (Escess of revenues over expenses + Depreciation exp. + Interest exp.)/ (Debt principal pmnt + Interest pmnts) > Measures ability to meet long-term debt obligations. Debt serivce cov. = 2.680

Answer rating: 100% (QA)

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