Horizontal, vertical, and ratio analyses. Exhibits 4.29a and 4.29b show the statement of operations and balance sheet for Resort Hospital for 20X1 and 20X0. The debt principal payment each year for Resort is $1,300,000, and its adjusted discharges are 6,500 for 20X0 and 5,500 for 20X1.

a. Perform horizontal and vertical analyses using the statement of operations.

b. Perform horizontal and vertical analyses using the balance sheet.

c. Compute all the selected ratios listed in Exhibit 4.16a.

Evaluate the financial state of Resort Hospital, a 60-bed facility, using all of the above measures. Make the basis for the vertical analysis the year 20X0.

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EXHIBIT 4.29a STATEMENT OF OPERATIONS FOR RESORT HOSPITAL Resort Hospital Statement of Operations for the Years Ended December 31, 20X1 and 20X0 (In thousands) Revenues Net patient service revenue Other operating revenue Total operating revenues 20X1 20X0 $33,500 $30,500 2,600 2,500 36,100 33,000 Expenses Salaries and benefits 23,500 19,600 Supplies and other expenses 11,400 10,500 Depreciation 700 700 Interest 710 710 Total operating expenses 36,310 31,510 Operating income (210) 1,490 Nonoperating revenue 6,500 1,200 Excess of revenue over expenses $6,290 $2,690