Now it's Your Turn!Assignment Exercise 14-1: Common Sizing

Refer to the Metropolis Health System (MHS) comparative financial statements at the back of the Examples and Exercises section.

Common size the MHS Statement of Revenue and Expenses.

Question 2:Example 14B: Trend Analysis

Trend analysis allows comparison of figures over time. Reread the chapter text about trend analysis and examine thedifferencecolumns shown in Table 14-3.

Practice Exercise 14-2: Trend Analysis

The worksheet below shows the assets of Hospital A over two years.

Perform trend analysis for the assets of Hospital A.

Hospital A

Year 1Year 2

Current Assets$1,600,000$2,000,000

Property, Plant, and Equipment 6,000,000 7,500,000

Other Assets400,000500,000

Total Assets $8,000,000 $10,000,000

Solution to Practice Exercise 14-2

Hospital A

Year 1Year 2Difference

Current Assets$1,600,000$2,000,000$ 400,00025%

Property, Plant, and Equipment6,000,0007,500,0001,500,00025%

Other Assets400,000500,000100,00025%

Total Assets$8,000,000$10,000,000$2,000,000

Note: The worksheet below shows Hospital A with both common sizing and trend analysis:

Hospital A

Year 1Year 2 Difference

Current Assets$1,600,00020%$2,000,00020%$ 400,00025%

Property, Plant,

and Equipment 6,000,000 75%7,500,000 75% 1,500,00025%

Other Assets400,000 5%500,000 5% 100,00025%

Total Assets$8,000,000 100%$10,000,000 100% $2,000,000

Now it's Your Turn:Assignment Exercise 14-2: Trend Analysis

Refer to the Metropolis Health System (MHS) comparative financial statements at the back of the Examples and Exercises section.

Perform trend analysis on the MHS Statement of Revenue and Expenses.