Not-for-Profit Hospital Financial Statement Analysis. Examine the financial statements for Oak Valley Hospital for the years ended December 31, 2010, and 2011.
Required
Prepare a short answer to address each of the following questions.
a. Discuss the relative importance of different classifications of assets to total assets. What additional information would you expect to find in the notes to the financial statements about major classification of assets?
b. Describe how net patient service revenue likely differs from gross patient revenue.
c. Did this hospital have a profitable year? Why or why not?
d. What is the best explanation for the change in cash for the most recent year? For the previousyear?

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OAK VALLEY HOSPITAL Consolidated Balance Sheets December 31 (in thousands) Liabilities and Net Assets Assets 2010 2011 2011 2010 Current liabilities: Current assets: $ 15,289 Cash and cash equivalents 623 Accounts payable and $ 53,041 $ 69,009 Marketable securities 6,963 accrued expenses Salaries, wages, and 11,776 Patient accounts receivable, less allowance for doubtful amounts withheld 11,009 7,295 Accrued vacation and sick pay 16,397 42,438 66,314 15,013 accounts Current portion of funds held Current portion of by Trustee 1,023 long-term debt 7,205 2,712 6,906 8,344 Inventories 8,846 Prepaid expenses and other current assets 16,530 91,089 17,550 Total current assets Total current liabilities 107,319 86,269 99,607 Assets with limited use: Capital expansion fund Deferred revenue and deposits 167,298 150,121 18,589 18,617 Board-designated Funds held by Trustee Accrued compensation Claims liability 17,100 92,170 98,046 21,830 207 30,068 69,442 74,457 Long-term debt, less 27,657 23,562 Investments 301,797 377,591 287,332 current portion 386,652 Total liabilities 573,721 596,433 Other assets: Investments 80,280 141,315