10:22 1 6 8 MOCK FINAL EXAM QUESTION Question 4 Following is an unadjusted Trial Balance for XYZ Hospital as at 31 December 2020. (Amounts in thousands) Debit ($) Credit ($) Cash 5,000 Cash equivalent 5,500 Marketable securities 1,000 Patient Accounts Receivable 15,000 Allowance for uncollectible receivable 1,500 Medical and supplies inventories 3,000 Prepaid Insurance 50 Building and equipment 40,000 Accumulated depreciation - building 8,000 Office Equipment 5,000 Accumulated depreciation - equipment 1,000 Accounts Payable 9,000 Accrued expenses 1,200 Estimated third party settlement (current due) 2,000 Long term debt 30,000 Mortgage Payable 10,000 Unrestricted net assets, beginning of the year 28,000 Patient service revenue (gross) 80,000 Provision for contractual adjustment 8,000 Provision for charity care 2,000 Operating expenses Depreciation expenses Loss on disposal of assets 45,000 5,000 40 Interest expenses Provision for bad debt 2,500 1,500 Other expenses 3,000 Investment income 2,000 Dividend income 500 Other Information: a. The hospital paid $3,000 of its long term debt in the month of May, 2020. b. The current portion of long term debt due is $5,000. Required: a. Compute the following ratios: 1. Current ratio 2. Quick ratio 3. Number of days patient revenue in receivable 4. Operating margin 5. Total margin 6. Long term debt to capitalization ratio 7. Debt service coverage 8. Times interest eamed 9. Long term debt to equity 10. Total assets turnover