3. Using the income statement and balance sheet examples provided in the chapter, calculate the return on capital in 2013.

Table 31 Hospital Income Statement

ABC Hospital
Income Statement	August 31, 2013
Inpatient revenue	$1,500,300,000
Outpatient revenue	$430,320,200
Total patient revenue	$1,930,620,200
Deductions, discounts, and allowances	($1,000,000,000)
Net patient revenues	$930,620,200
Total operating expenses	($830,220,200)
Operating income	$100,400,000
Other income (donations, contributions, gifts)	$5,200,500
Income from investments	$15,000,500
Government appropriations	$0
Auxiliary and nonpatient revenue	$3,000,000
Total nonpatient revenue	$23,201,000
Total other expenses	($124,400,000)
Net income or (loss)	($799,000)

Table 32 Hospital Balance Sheet

2013 Assets	(Millions)
Current assets:
Cash and equivalents	$325
Short-term investments	$175
Accounts receivable, net	$550
Inventories	$250
Prepaid expenses	$50
Total current assets	$1,350
Long-term assets:
Land and buildings, net	$750
Property and equipment, net	$500
Investments	$200
Total long-term assets	$1,450
Total Assets	$2,800
Liabilities and Equity/Net Assets
Current liabilities:
Accounts payable	$360
Taxes and other payables	$40
Accrued liabilities	$80
Other short-term liabilities	$10
Total current liabilities	$490
Long-term liabilities:
Long-term debt	$180
Other long-term obligations	$20
Total long-term liabilities	$200
Total Liabilities	$690
Equity/net assets	$2,110
Total Liabilities and Net Assets	$2,800