Following are condensed balance sheets and statements of operations for Elias Hospital for the years ended December 31, 2013 and 2012 ( amounts in thousands of dollars).

Use the preceding information to do the following:
a. Compute the following ratios for both 2013 and 2012:
1. Current ratio
2. Number of days’ cash on hand
3. Number of days’ patient service revenue in receivables
4. Operating margin
5. Total margin
6. Long- term debt to capitalization ratio
7. Debt service coverage
8. Times interest earned
b. Using these ratios and any other observations you make from reviewing the financial statements, discuss whether the hospital’s financial position and results of operations improved or worsened in 2013 compared with2012.

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Balance Sheets 2013 2012 Assets Current assets: 10,877 5,740 1,300 14,194 2,856 34,967 18,541 6,570 50,492 110.570 Cash and cash equivalents Short-term investments Assets limited as to use Patient accounts receivable, net Supplies inventory 9,758 10,836 970 15,100 2,670 39,334 17,979 6,695 51,038 115,046 Total current assets Assets limited as to use, net of current portion Long-term investments Property and equipment, net Total assets Liabilities and Net Assets Current liabilities: $1.470 7,787 2,143 11,400 23.144 34,544 Current portion of long-term debt Accounts payable and accrued expenses Estimated third-party payer settlements 1,750 7.496 1,942 11,188 24,014 35,202 Total current liabilities Long-term debt, net of current portion Total liabilities Net assets: Unrestricted Temporarily restricted Permanently restricted 70,846 2,115 7,541 80,502 115,046 66,199 2,470 6,699 Total net assets Total liabilities and net assets Unrestricted revenues, gains, and other support: Net patient service revenue Other revenue 97,156 2,051 99,207 92,942 2,162 95,104 Total revenues, gains, and other support Expenses: Operating expenses Depreciation and amortization Interest Provision for bad debts 87,521 4,782 1,752 2,000 96,055 3,152 1,900 5,052 (405) 4,647 80,585 4,280 1,825 2,600 89,290 5,814 1,025 6,839 (1,140) 5,699 Total expenses Operating gain Other income -investment income Excess of revenues over expenses Other items (not detailed) Increase in unrestricted net assets