Bayside Memorial Hospital's financial statements are presented in Tables 13.1, 13.2, and 13.3.

a. Calculate Bayside's financial ratios for 2009. Assume that Bayside had $1 million in lease

payments and $1.4 million in debt principal repayments in 2009. (Hint: use the book discussion to

identify the applicable ratios.)

b. Interpret the ratios. Use both trend and comparative analysis. For the comparative analysis, assume

that the industry average data presented in the book is valid for both 2009 and 2010.

TABLE 13.1

	2010	2009
Net patient service revenue	$108,600	97,393
Premium revenue	5,232	4,622
Other revenue	3,644	6,014
Total revenues	$117,476	$108,029
Expenses:
Nursing Services	$58,285	$56,752
Dietary services	5,424	4,718
General services	13,198	11,655
Admin services	11,427	11,585
Employee health and welfare	10,250	10,705
Provision for uncollectibles	3,328	3,469
Provision for malpractice	1,320	1,204
Depreciation	4,130	4,025
Interest Expense	1,542	1,521
Total expenses	$108,904	$105,634
Net income	$8,572	$2,395

Table 13.2

	2010	2009
Cash	$4,263	$5,095
Short term investments	2,000	0
Accounts receivable	21,840	20,738
Inventories	3,177	2,982
Total current assets	$31,280	$28,815
Gross plant and equipment	$145,158	$140,865
Accumulated depreciation	25,160	21,030
Net plant and equipment	$119,998	$119,835
Total Assets	$151,278	$148,650
Accounts payable	4,707	5,145
Accrued expenses	5,650	5,421
Notes payable	825	4,237
Current portion of long-term debt	2,150	2,000
total current liabilities	$13,332	$16,803
Long term debt	28,750	30,900
Capital lease obligations	1,832	2,155
Total long term liabilities	30,582	33,055
Net Assets (equity)	$107,364	$98,792
Total Liabilities and Net Assets	$151,278	$148,650

Table 13.3(Cash flows from operating activities)

Net Income	$8,572
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	$11,196
Cash flows from Investing activities:
Investment in plant and equipment	($4,293)
Cash flows from financing activities:
Investment in short term securities	($2,000)
Repayment of long term debt	(3,412)
Capital lease principal repayment	(323)
Change in current portion of long-term debt	150
Net cash flow from financing	($7,735)
Net increase(decrease) in cash	($832)
Beginning cash	5,095
Ending cash	$4,263