Refer to Megatropolis Hospital’s financial statements below for calculating the ratios requested in questions

Megatropolis Hospital

Statement of Operations

For the Year Ended December 31, 2007

Revenues, Gains, Other Support

Net patient service revenue ................................................$1,500,000.00

Other revenue ......................................................................$200,000.00

Total Revenue ..................................................................$1,700,000.00

Expenses

Nursing Services ................................................................$1,200,000.00

Administrative Services ........................................................$200,000.00

Depreciation .........................................................................$100,000.00

Other Expenses ......................................................................$50,000.00

Total Expenses ..................................................................$1,550,000.00

Operating Income ................................................................$150,000.00

Investment Income ................................................................$50,000.00

Excess of revenues over expenses .......................................$200,000.00

Increase in Unrestricted Net Assets .....................................$200,000.00

Megatropolis Hospital

Balance Sheet

As of December 31, 2007 (2006 omitted)

Assets

Current Assets

Cash and cash equivalents ..................................................$50,000.00

Net patient receivables .....................................................$350,000.00

Total Current Assets .........................................................$400,000.00

Properties and Equipment

Gross properties and equipment .......................................$900,000.00

Less accumulated depreciation ........................................$475,000.00

Net Properties and Equipment .........................................$425,000.00

Total Assets .....................................................................$825,000.00

Liabilities and Net Assets

Current Liabilities

Accounts Payable ..........................................................200,000.00

Salaries Payable .............................................................$50,000.00

Total Current Liabilities ...............................................$250,000.00

Notes Payable .............................................................$200,000.00

Unrestricted Net Assets................................................ $375,000.00

Total Liabilities and Net Assets ...................................$825,000.00

1. What is Megatropolis Hospital’s operating margin?

2. What is Megatropolis Hospital’s day in accounts receivable?

3. What is Megatropolis Hospital’s long-term debt to net assets ratio?

4. What is Megatropolis Hospital’s age of plant?

5. What is Megatropolis Hospital’s fixed asset turnover ratio?

6. What are Megatropolis Hospital’s days of cash on hand?