Module 5 AssignmentCommon Sizing Template

1. Common size the MHS Statement of Revenue and Expenses for each category.

Metropolis Health System Statement of Revenue and Expenses For the Years Ended March 31, 20XX and 20XX

Year 2 Common Sized Year 1 Common Sized

Revenue

Net patient service revenue $34,000,000 $33,600,000 97.11%

Other revenue $1,100,000 $1,000,000 2.89% (EXAMPLE)

Total Operating Revenue $35,100,000 100% $34,600,000 100%

Expenses

Nursing services $5,025,000 $5,450,000

Other professional services $13,100,000 $12,950,000

General services $3,200,000 $3,220,000

Support services $8,300,000 $8,340,000

Depreciation $1,900,000 $1,800,000

Amortization $50,000 $50,000

Interest $325,000 $350,000

Provision for doubtful accounts $1,500,000 $1,600,000

Total Expenses $33,400,000 100% $33,760,000 100%

Income from Operations $1,700,000 $840,000

Nonoperating Gains (Losses)

Unrestricted gifts and memorials $20,000 $70,000

Interest income $80,000 $40,000

Nonoperating Gains Net $100,000 100% $110,000 100%

Revenues and Gains in Excess of Expenses and Losses $1,800,000 $950,000

Ratio Calculations (Show your Work)

Use the Metropolis Health System (MHS) comparative financial statements in the Examples and Exercises section.

Quick Ratio Cash & Cash Equivalents + Net Receivables / Current Liabilities

Days Receivables Net Receivables / Net Credit Revenue / # of Days In Period

OperatingMargin Operating Incom (loss) / Total Operating Revenues

See following tab M5A2 Ratios 'TIP SHEET' for assistance with Ratios

*******I need the answer for the Quick Ratio - Days Receivables - Operating Magin