Unit 5 Homework Assignment 141: Common Sizing

The worksheet below shows the assets of two hospitals.

Required

Perform common sizing for the assets of the two hospitals.

Same Year for Both Hospitals

Hospital A Hospital B

Current Assets $2,000,000 $8,000,000

Property, Plant, and Equipment 7,500,000 30,000,000

Other Assets 500,000 2,000,000

_______________________

Total Assets $10,000,000 $40,000,000

Example 14A: Common Sizing

Common sizing converts numbers to percentages so that comparative analysis can be performed. Reread the chapter text about common sizing and examine the percentages shown in Table 141.