22. a) Calculate the financial ratios below for 20X1.

- Ratios for 20X0 are shown so that you can check the formulas you use

- Note that dollar amounts on the Balance Sheet and Statement of Operations are stated in thousands (the final 3 zeroes are omitted). In the text of the problem, however, annual debt Principal Payments and numbers of Adjusted Discharges are not stated in thousands (that is, no zeroes are omitted).

Ratios	20X0
Liquidity Ratios
Current Ratio	3.06
Days in Accounts Receivable	59
Days Cash on Hand	208
Average Payment Period (Days)	41
Revenue, Expense, & Profitability Ratios
Operating Revenue per Adjusted Discharge	$7,993
Operating Expense per Adjusted Discharge	$7,659
Salary & Benefit Exp. as % of Operating Exp.	63%
Operating Margin	0.04
Return on Net Assets	0.21
Activity Ratios
Total Asset Turnover Ratio	0.99
Age of Plant	7.11
Capital Structure Ratios
Long-Term Debt to Net Assets	1.98
Net Assets to Total Assets	0.30
Debt Service Coverage Ratio	2.21

b) Using the ratios for 20X0 and 20X1, evaluate the financial status of Island Regional Medical Center. Be sure to comment on its liquidity, profitability, activity, capital structure, and overall financial condition.