Calculate the liquidity ratios below based on the 2020 audited financial statements from Marion General Hospital's (MGH) audit report, attached below.

Liquidity Ratio Analysis a. The liquidity ratio Current Ratio is calculated as a ratio of Current assets to Current liabilities.

Current ratio = Current assets/Current liabilities Current assets = ______________________ Current liabilities = _____________________ Current ratio = ________________________ Current ratio = _________________________ Peer-group average = 2.3 times

The liquidity ratio Days cash on hand (DCOH). DCOH = Cash + Marketable securities/ [(Operating expenses - Depreciation)/365] Cash and cash equivalents = ______________________ Marketable securities1 = _____________________ Numerator =_______________________

Total operating expenses =________________________

(Depreciation) = ____________________________ Denominator = _______________________________ Denominator/365 = ___________________________ DCOH = ___________________________ DCOH = ___________________________ Peer-group average = 205.0 days

MARION GENERAL HOSPITAL, INC. BALANCE SHEETS JUNE 30, 2020 AND 2019 ASSETS Current assets Cash Account receivable Patient services Physician services Other Inventories Current portion of notes receivable Prepaid expenses Total current assets Assets limited as to use Board designated funds Trustee held Total assets limited as to use Property and equipment, net Other assets Investment in joint ventures Notes receivable, net Operating lease right-of-use assets Goodwill and other intangible assets, net Other Total other assets Total assets 2020 $ 36,658,197 22,703,824 2,091,085 1,543,770 2,264,928 872,264 2,400,003 68,534,071 259,954,742 85 259,954,827 78,011,201 1,531,804 1,973,080 5,028,665 3,085,557 3,144,208 14,763,314 $ 421,263,413 2019 $ 8,144,406 23,581,628 3,166,527 458,828 2,052,978 926,265 3,064,771 41,395,403 253,893,430 1,393,016 255,286,446 82, 804, 360 1,446,459 2,139,032 -0- 3,489,859 2,640,330 9,715,680 $ 389,201,889 MARION GENERAL HOSPITAL, INC. BALANCE SHEETS JUNE 30, 2020 AND 2019 LIABILITIES AND NET ASSETS Total liabilities and net assets $ 421,263,413 2020 2019 Current liabilities Accounts payable $ 5,105,279 $ 5,196,908 Accrued liabilities Salaries and related liabilities 8,460,370 6,172,852 Interest 717,486 761,940 Other 274,719 304,220 Estimated thirdparty settlements 16,235,680 671,595 Refundable advances 6,066,794 -0- Current portion of long-term debt 2,175,000 2,110,000 Current portion of operating lease liabilities 1,535,432 0 Total current liabilities 40,570,760 15,217,515 Long-term liabilities Long-term debt, less current portion 56,557,526 58,701,377 Operating lease liabilities, less current portion 3,517,028 0 Pension liability 20,117,900 21,208,153 Other longterm liabilities 1,208,860 1,274,025 Total long-term liabilities 81,401,314 81,183,555 Total liabilities 121,972,074 96,401,070 Net assets Undesignated 39,336,597 38,907,389 Designated 259,954,742 253,893,430 Total net assets without donor restrictions 299,291,339 292,800,819 $ 389,201,889 MARION GENERAL HOSPITAL, INC. STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS YEARS ENDED JUNE 30, 2020 AND 2019 2020 Revenues Patient service revenue $ 183,662,720 Other revenue 6,748,960 Net assets released from restrictions -0- Total revenues 190,41 1,680 Expenses Salaries and wages 73,494,676 Employee benets 16,428,391 Physician services 7,420,586 Professional services 11,069,353 Medical supplies 12,751,348 Drugs and IV solutions 12,294,842 Food 925,839 Purchased services 12,934,100 Rent 2,367,021 Plant and equipment maintenance 5,184,870 Utilities 2,305,164 Nonmedical supplies 2,604,778 Leased property 1,403,597 Other 2,084,751 Insurance 1,815,340 HAF and HIP programs 12,060,945 Interest 1,882,229 Depreciation and amortization 11,093,170 Total expenses 190,121,000 Operating income 290,680 Nonoperating Investment return and other, net 7,084,920 Net periodic pension cost (2,872,653) Contributions, gifts, and bequests 24,667 Excess of revenues over expenses 4,527,614 Other changes Pension related changes other than net periodic pension cost 1,962,906 Change in net assets without donor restrictions 6,490,520 Change in net assets with donor restrictions Net assets released from restrictions -0- Change in net assets 6,490,520 Net assets Beginning of year 292,800,819 End of year I; 299,291,339 Restated 2019 $ 180,002,046 1,879,953 10,155 181,892,154 65,842,280 16,178,980 8,141,401 1 1,748,293 12,246, 591 10,070,849 921,353 14,878,247 2,231,223 5,486,994 2,196,607 2,291,232 1,305,467 1,638,831 1,783,059 11,709,760 2,027,695 11,139,021 181,837,883 54,271 12,127,646 (3,060,335) 1,113,818 10,23 5,400 (162,181) 10,073,219 (10,155) 10,063,064 282,737,755 $ 292,800,819 MARION GENERAL HOSPITAL, INC. STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 2020 AND 2019 Operating activities Change in net assets Adjustments to reconcile change in net assets to net cash from operating activities: Depreciation and amortization Amortization of debt issuance costs and premium Amortization of notes receivable (Gain) loss on disposal of property and equipment Contribution of property and equipment Unrealized (gain) loss on investments Realized loss on sale of investments Gain on equity in joint ventures Changes in operating assets and liabilities: Accounts receivable Accrued interest, inventories, prepaid expenses, and other current assets Other long-term assets Pension liability Accounts payable and accrued liabilities Refundable advances Estimated third-party settlements Net cash ows from operating activities Investing activities Additions to property and equipment Proceeds from the sale of property and equipment Proceeds from the sale or maturity of investments Business acquisition Purchases of investments Dividends received from joint ventures Advances on notes receivable Payments received on notes receivable Net cash ows from investing activities Financing activities Repayments of long-term debt Net change in cash Cash Beginning of year End of year Supplemental cash flows information Interest paid, net of amounts capitalized of approximately $45,000 and $37,000 in 2020 and 2019, respectively Contribution of property and equipment Property and equipment included in accounts payable Cash paid for amounts inciuded in measurement of lease liabilities: Operating cash ows from operating leases Right-ofuse assets obtained in exchange for lease obligations: Operating lease 2020 $ 6,490,520 1 1,093,170 31,149 1,502,393 (34,253) '0' 542,295 50,303 (910,292) 1,953,246 (632,1 24) (5,617,887) (1,090,253) 6,80 5,322 6,066,794 15,564,085 41,814,473 (5,606,847) 49, 302 64,686,920 -0- (69,370, 387) 332,775 (1 ,446, 373) 163,928 (11,190,682) (2, 1 10,000) 28,513,791 8,144,406 11'. 36,658,197 $ 1,926, 683 -0- $ 303,907 '65 $ 1,584,251 11'. 6,612,916 2019 $ 10,063,064 S if} 1 1,1 39,021 32,421 1,437,249 9,929 (1,095,000) (5,820,630) 2,234,037 (752,369) (2,633,581) (944,391) (490,789) 1,222, 51 6 (2,21 5,01 3) -0- (1,180,007) 11,055,957 (5,013,728) 3,492 68,1 06,742 (1 ,700,000) (72,899,394) 254,893 (1 ,246,794) 248,860 (12,245,929) (2,040,000) (3,229,972) 11,374,378 8,144,406 2,042,130 1,095,000 622,731 -0- _0