Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Are my answered questions correct? Can you help me solve the unanswered questions? Below are 5 financial documents that are needed to answer 16 questions.

Are my answered questions correct? Can you help me solve the unanswered questions? Below are 5 financial documents that are needed to answer 16 questions.

Riverside Memorial
Year Ended As of December 31, 2019
Cash Flows From Operating Activities
Operating Income $ 6,474
Adjustments:
Depreciation $ 4,130
Increase in Accounts Receivable $ (1,102)
Increase in Inventories $ (195)
Decrease in Accounts Payable $ (438)
Increase in Accrued Expenses $ 229
Net Cash Flow from Operations $ 9,098
Cash Flow From Investing Activities
Investment in Property and Equipment $ (4,293)
Investment in Short-Term Securities $ (2,000)
Net Cash Flow from Investing $ (6,293)
Cash Flows From Financing Activities:
Nonoperating Income $ 2,098
Repayment of Long-Term Debt $ (2,150)
Repayment of Notes Payable $ (3,262)
Capital Lease Principal Repayment $ (323)
Net Cash Flow From Investing $ (3,637)
Net Increase (Decrease) in Cash and Equivalents $ (832)
Beginning Cash and Equivalents $ 3,095
Ending Cash and Equivalents $ 2,263

Riverside Memorial
Year Ended As of December 31, 2019 and 2018
Revenues: 2019 2018
Patient Service Revenue $ 106,502 $ 95,398
Less: Provision for Bad Debts $ 3,428 $ 3,519
Net Patient Service Revenue $ 103,074 $ 91,879
Premium Revenue $ 5,232 $ 5,622
Other Revenue $ 3,644 $ 6,014
Net Operating Revenues $ 111,950 $ 103,515
Expenses
Nursing Services $ 58,285 $ 56,752
Dietary Services $ 5,424 $ 4,718
General Services $ 13,198 $ 11,655
Administrative Services $ 11,427 $ 11,585
Employee Health and Welfare $ 10,250 $ 10,705
Malpractice Insurance $ 1,420 $ 1,304
Depreciation $ 4,130 $ 4,025
Interest Expense $ 1,564 $ 1,543
Total Expenses $ 105,698 $ 102,287
Operating Income $ 6,252 $ 1,228
Non-operating Income $ 2,098 $ 1,995
Net Income $ 8,350 $ 3,223
Riverside Memorial
As of December 31, 2019 and 2018
Balance Sheet
2019 2018
Cash and Equivalents $ 2,163 $ 2,895
Short-Term Investments $ 4,000 $ 3,022
Net Patient Accounts Receivable $ 21,840 $ 20,701
Inventories $ 3,177 $ 2,982
Total Current Assets $ 31,180 $ 29,600
Gross Property and Equipment $ 145,158 $ 140,865
Accumulated Depreciation $ 25,160 $ 21,030
Net Property and Equipment $ 119,998 $ 119,835
Total Assets $ 151,178 $ 149,435
Accounts Payable $ 4,607 $ 4,945
Accrued Expenses $ 5,650 $ 5,421
Notes Payable $ 2,975 $ 6,200
Total Current Liabilities $ 13,232 $ 16,566
Long-Term Debt $ 28,750 $ 30,900
Capital Lease Obligations $ 1,832 $ 3,177
Total Long-Term Liabilities $ 30,582 $ 34,077
Net Assets (Equity) $ 107,364 $ 98,792
Total Liabilities and Net Assets $ 151,178 $ 149,435

#1. Using "Chapter 17 - Financials in Excel," what is the Return on Assets Ratio for Riverside Memorial in 2018? ROA=Return on Assets = Net Income / Total Assets= 5.5% #2. Using "Chapter 17 - Financials in Excel," what is the Current Ratio for Riverside Memorial in 2018? Current Ratio= Current Assets / Current Liabilities= 1.8 #3. Using "Chapter 17 - Financials in Excel," what is the Days Cash on Hand for Riverside Memorial in 2018? #4. Using "Chapter 17 - Financials in Excel," what is the Average Collection Period / Days in Accounts Receivable for Riverside Memorial in 2018? #5. Using "Chapter 17 - Financials in Excel," what is the Debt Ratio for Riverside Memorial in 2018? Debt Ratio = Total Debt / Total Assets=1.71 #6. Using "Chapter 17 - Financials in Excel," what is the Debt to Equity Ratio for Riverside Memorial in 2018? Debt to Equity Ratio = Total Debt / Total Equity= 0.51 #7. Using "Chapter 17 - Financials in Excel," what is the Times Interest Earned Ratio for Riverside Memorial in 2018?

Times Interest Earned Ratio = Earnings Before Interest and Taxes (EBIT)/ Interest Expense

#8. Using "Chapter 17 - Financials in Excel," what is the Fixed Assets Turnover Ratio for Riverside Memorial in 2018? Fixed Asset Turnover = Total Revenue / Net Fixed Assets=1.1

The Heart Hospital
As of September 30, 2019 (in thousands)
Balance Sheet
2019
Current Assets
Cash $ 15,500
Accounts Receivable, Net $ 5,941
Medical Supplies Inventory $ 1,111
Prepaid Expense and Other Current Assets $ 1,429
Total Current Assets $ 23,981
Property, Plant and Equipment, Net $ 34,200
Other Assets $ 901
Total Assets $ 59,082
Current Liabilities
Accounts Payable $ 2,231
Accrued Compensation and Benefits $ 2,443
Other Accrued Liabilities $ 2,843
Current Portion of Long-Term Debt $ 2,064
Total Current Liabilities $ 9,581
Long-Term Debt $ 22,071
Total Liabilities $ 31,652
Owners' Equity $ 27,430
Total Liabilities and Owners' Equity $ 59,082
The Heart Hospital
Statement of Operations
Year Ended September, 30, 2019 (in thousands)
Revenues:
Patient Service Revenue net of Discounts and Allowances $ 80,550
Provision for Bad Debt $ (2,300)
Net Patient Service Revenue $ 78,250
Operating Expenses:
Personnel Expense $ 21,707
Medical Supplies Expense $ 16,047
Other Operating Expense $ 9,721
Depreciation Expense $ 2,625
Interest Expense $ 1,322
Total Operating Expense $ 51,422
Income from Operations $ 26,828
Non-Operating Income $ 650
Net Income $ 27,478

#9. Using "Chapter 17 - Financials in Excel," what is the Return on Assets Ratio for The Heart Hospital? ROA=Return on Assets = Net Income / Total Assets=46.5%

#10. Using "Chapter 17 - Financials in Excel," what is the Current Ratio for The Heart Hospital?

Current Ratio = Current Assets / Current Liabilities=2.50

#11. Using "Chapter 17 - Financials in Excel," what is the Days Cash on Handfor The Heart Hospital? Days Cash on Hand = (Cash + Short-Term Investments) / (Expenses - Depreciation) / 365=

#12. Using "Chapter 17 - Financials in Excel," what is the Average Collection Period/Days in Accounts Receivablefor The Heart Hospital?

#13. Using "Chapter 17 - Financials in Excel," what is the Debt Ratio for The Heart Hospital?

Debt Ratio = Total Debt / Total Assets=0.70

#14.Using "Chapter 17 - Financials in Excel," what is the Debt to Equity Ratio for The Heart Hospital? Debt to Equity Ratio = Total Debt / Total Equity= 0.54??????

#15. Using "Chapter 17 - Financials in Excel," what is the Times Interest Earned Ratio for The Heart Hospital?

Times Interest Earned Ratio = Earnings Before Interest and Taxes (EBIT) / Interest Expense

#16. Using "Chapter 17 - Financials in Excel," what is the Fixed Assets Turnover Ratio for The Heart Hospital? Fixed Asset Turnover = Total Revenue / Net Fixed Assets=2.27

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quality Management Audits In Nuclear Medicine Practices IAEA Human Health Series No 33

Authors: International Atomic Energy Agency

2nd Edition

9201017154, 978-9201017154

More Books

Students also viewed these Accounting questions