This assignment will give you practice with calculating ratios and comparing and contrasting different types of financial data.

Instructions:

Review the "Ratio Analysis Practice Problem" to understand how ratios were calculated with $2019$ data. Then, using the financial statements lor Boboat Hospital in Chypter $3,$ calculate the following ratios for $2020$:

Current ratio

Collection period ratio

Days cash on hand, all sources, ratio

bays cash on hand, short$-$term sources, ratio

Average payment period ratio

Operating margin ratio

Total margin ratio

Return on net assets ratio

Total asset tumover ratio

Average age of plant ratio

Fixed asset turnover ratio

Current asset turnover ratio

Inventory turnover ratio

Net asset financing ratio

Long$-$term debt to capitalization ratio

Debt service coverage ratio

Cash flow to debt ratio

$.$ Indicate whether each $2020$ ratio is better or worse than the $2019$ ratio.

Indicate whether the $2020$ ratios are betler or worse than the benchmarks using the Optum medians for each ratio $($see exhibit $3\mathrm{.}5$ in the text$).$

Examine the $2019$ and $2020$ ratios and assess the hospital's financial performance. Is the hospital in better or worse financial shape in $2020$ as compared to $2019?$

$5.$ If you were COO of Bobcat Hospital, how would you use this ratio data to make decisions for $2021?$

Details: Use Excel or a table in Word to organize your answers. Use a combination of numerical and narrative answers.

Submit your assignment to the Unit $4$ Assignment Dropbox.

Unit $4$ Assignment Grading Rubric, $$

Optum Medians, $20162\mathrm{.}1747-50101\mathrm{.}4042\mathrm{.}60$Days cash on hand, all sourcesCollection periodCurrent ratioLiquidityRatios$56\mathrm{.}40$Days cash on hand, short$-$term SOurceseuecsAverage payment period$\mathrm{.}46$Operating margin $(\%)$acmgu ty pr goProfitability$3-725\mathrm{.}00$Return on net assets $\%)$icnqe oSP t qcuapTotal margin $(\%)-9811\mathrm{.}79$cabcubg'$2\mathrm{.}50$Total asset turnover cp stcbeimAverage age of plant $($years$)$c scAsset efficiency$3\mathrm{.}2559-53$nee peacgehTe nneFixed asset turnoverainnc toCurrent asset turnoverceneInventory turnover$51\mathrm{.}70$Capital structure$27\mathrm{.}803\mathrm{.}06$Long$-$term debt to capitalization Ph oNet asset financing $(\%)$e sug $($st$17\mathrm{.}30$DebtservicecoverageCK VHCash flow to debt $(\%)$heg

REVENUESNet patient services revenuePremium revenue on sponsored health plansOther operating revenueTotal operating revenueEXPENSESSalaries, wages, and benefitsSupplies, drugs, and purchased servicesEstimated bad debt expenseDepreciation expenseInterest yTotal operating expensesNONOPERATING INCOMEc cUcCE ogEXCESS OF REVENUE OVER EXPENSESCHANGES IN NET ASSETSAdd: Unrestrictednet assets January$1$cctnInvestment income in c ungnc oLe acs beAdd: Restricted net assets JanuaryRestricted net assets December $31$Total net assets January $160$$ $8,402400$eTotal net assets December $3130$ Ac$9$LztS$32$ AesL$2$OPERATING INCOME$-$lcm bcLE$),$ cct e $(2)2020$to$440$b $4\mathrm{.}9809,2423,0806$o$04711139,244$Unrestricted net assets December$31$ eg p$3,283$og$95933,1901,1521,1524,3424,4352019$$ $8,1194478,5664,2782,9565004431098,286280853652,8253,1901,1521,1523,9774,342$

$20192020$SASSETS$30$$Current assets$2,86045$Cash$1403\mathrm{.}536$Temporary investments$40175$Receivables, net$3\mathrm{.}35032$Inventory$3\mathrm{.}912$Prepaid expensesTotal current assets$6,5801,2596,980$Noncurrent assets$5\mathrm{.}3211,730$Land, plant, and equipment$7905,2501096096,2201135\mathrm{.}9729\mathrm{.}5709,884$Less accumulated depreciationPlant and equipment, netLong$-$term investmentsOther noncurrent assetsTotal noncurrent assetsTotal assetsLIABILITIES AND NET ASSETSLiabilities$$335$$ $302$Current liabilities$606345$Accounts payable$87115$Notes payable$10224178137$Accrued expenses payableDeferred revenue$1,7281841,849$Estimated third$-$party adjustmentsCurrent portion of long$-$term debtTotal current liabilities$3\mathrm{.}5003,600$Long$-$term debt, net of current portionNoncurrent liabilities$5,2285\mathrm{.}449$Total liabilities$3\mathrm{.}1903,2831,152$Net assets$1,152$Unrestricted net assetsRestricted net assets$43424\mathrm{.}435$S$9\mathrm{.}570$S$9,884$Total net assetsTotal liabilities and net assets$280124370$