Cash Flows From Operating Activities Operating Income 6,675 $ Adjustments: Depreciation 4,500 $ Increase in Accounts Receivable (1,102) $ Increase in Inventories (295) $ Decrease in Accounts Payable (438) $ Increase in Accrued Expenses 446 $ Net Cash Flow from Operations 9,786 $ This is a formula 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) $ This is a formula Cash Flows From Financing Activities: Nonoperating Income 3,240 $ Repayment of Long-Term Debt (2,150) $ Repayment of Notes Payable (3,262) $ Capital Lease Principal Repayment (475) $ Net Cash Flow From Investing (2,647) $ This is a formula Net Increase (Decrease) in Cash and Equivalents 846 $ This is a formula Beginning Cash and Equivalents 3,095 $ Ending Cash and Equivalents 3,941 $ Jackson Hospital Year Ended As of December 31, 2018 Statement of Cash Flows Module 3: Part 1 Financial Condition Analysis HOMEWORK Version B Revenues: 2018 Patient Service Revenue 105,697 $ Less: Provision for Bad Debts 4,500 $ Net Patient Service Revenue 101,197 $ This is a formula Premium Revenue 4,822 $ Other Revenue 6,014 $ Net Operating Revenues 112,033 $ This is a formula Expenses Nursing Services 48,200 $ Dietary Services 4,718 $ General Services 11,655 $ Administrative Services 11,585 $ Employee Health and Welfare 10,705 $ Malpractice Insurance 1,204 $ Depreciation 4,500 $ Interest Expense 1,800 $ Total Expenses 94,367 $ This is a formula Operating Income 17,666 $ This is a formula Non-operating Income 2,240 $ Net Income 19,906 $ This is a formula Year Ended As of December 31, 2018 Jackson Hospital Income Statement Module 3: Part 1 Financial Condition Analysis HOMEWORK Version B 2018 Cash and Equivalents 9,800 $ Short-Term Investments 2,800 $ Net Patient Accounts Receivable 18,640 $ Inventories 2,982 $ Total Current Assets 34,222 $ This is a formula Gross Property and Equipment 150,650 $ Accumulated Depreciation 35,880 $ Net Property and Equipment 114,770 $ This is a formula Total Assets 148,992 $ This is a formula Accounts Payable 6,200 $ Accrued Expenses 5,421 $ Notes Payable 6,237 $ Total Current Liabilities 17,858 $ This is a formula Long-Term Debt 30,900 $ Capital Lease Obligations 1,442 $ Total Long-Term Liabilities 32,342 $ This is a formula Net Assets (Equity) 98,792 $ Total Liabilities and Net Assets 148,992 $ This is a formula Jackson Hospital As of December 31, 2018 Balance Sheet Module 3: Part 1 Financial Condition Analysis HOMEWORK Version B #1. What is the Return on Assets Ratio for Jackson Hospital in 2018? Choice: 1.6% Choice: 3.2% Choice: 8.40% Choice: 13.36% #2. What is the Current Ratio for Jackson Hospital in 2018? Choice: 1.7 times Choice: 2.8 % Choice: 1.9 times Choice: 2.4 times #3. What what is the Days Cash on Hand for Jackson Hospital in 2018? Choice: 12.1 days Choice: 18.9 days Choice: 35.00 days Choice: 51.18 days #4. What is the Average Collection Period / Days in Accounts Receivable for Jackson Hospital in 2018? Choice: 15.85 days Choice: 48.13 days Choice: 67.23 days Choice: 82.39 days #5. What is the Debt Ratio for Jackson Hospital in 2018? Choice: 100% Choice: 33.7% Choice: 0.0% Choice: 24.2% #6. What is the Debt to Equity Ratio for Jackson Hospital in 2018? Choice: 50.8% Choice: 61.2% Module 3: Part 1 Financial Condition Analysis HOMEWORK Version B Choice: 30.0% Choice: 25.8% #7. What is the Times Interest Earned Ratio for Jackson Hospital in 2018? Choice: 8.4 times Choice: 12.06 times Choice: 5.1 times Choice: 2.6 times #8. What is the Fixed Assets Turnover Ratio for Jackson Hospital in 2018? Choice: 0.51 times Choice: 0.87 times Choice: 1.00 times Choice: 0.33 times Module 3: Part 1 Financial Condition Analysis HOMEWORK Version B For Questions #9-16, in the Excel document provided use the numbers for Heart Hospital. Revenues: Patient Service Revenue net of Discounts and Allowances 72,460 $ Provision for Bad Debt (4,457) $ Net Patient Service Revenue 68,003 $ Operating Expenses: Personnel Expense 22,500 $ Medical Supplies Expense 15,047 $ Other Operating Expense 11,350 $ Depreciation Expense 4,500 $ Interest Expense 2,800 $ Total Operating Expense 56,197 $ Income from Operations 11,806 $ Other Income: Other Income, Net 1,280 $ Total Other Income (Expenses), Net 1,280 $ Net Income 13,086 $ The Heart Hospital Statement of Operations Year Ended September, 30, 2018 (in thousands) Module 3: Part 1 Financial Condition Analysis HOMEWORK Version B #9. What is the Return on Assets Ratio for The Heart Hospital? Choice: 12.2% Choice: 23.28% Choice: 45.7% Choice: Not enough information provided #10. What is the Current Ratio for The Heart Hospital? Choice: 2.45 times Choice: 4.5 times Choice: 5.4 times Choice: 1.2 times 2018 Current Assets Cash 13,980 $ Accounts Receivable, Net 4,500 $ Medical Supplies Inventory 1,640 $ Prepaid Expense and Other Current Assets 1,429 $ Total Current Assets 21,549 $ Property, Plant and Equipment, Net 33,769 $ Other Assets 901 $ Total Assets 56,219 $ Current Liabilities Accounts Payable 2,100 $ Accrued Compensation and Benefits 2,543 $ Other Accrued Liabilities 2,100 $ Current Portion of Long-Term Debt 2,064 $ Total Current Liabilities 8,807 $ Long-Term Debt 19,982 $ Total Liabilities 28,789 $ Owners' Equity 27,430 $ Total Liabilities and Owners' Equity 56,219 $ Balance Sheet The Heart Hospital As of September 30, 2018 (in thousands) Module 3: Part 1 Financial Condition Analysis HOMEWORK Version B #11. What is the Days Cash on Hand for The Heart Hospital? Choice: 108.4 days Choice: 120 days Choice: 88.1 days Choice: 98.7 days #12. What is the Average Collection Period/Days in Accounts Receivable for The Heart Hospital? Choice: 12.3 days Choice: 24.15 days Choice: 30.0 days Choice: 33.5 days #13. What is the Debt Ratio for The Heart Hospital? Choice: 45.6% Choice: 51.2% Choice: 32.0% Choice: 98.9% #14. What is the Debt to Equity Ratio for The Heart Hospital? Choice: 2.05 times Choice: 1.05 times Choice: 5.1 times Choice: 0.79 times #15. What is the Times Interest Earned Ratio for The Heart Hospital? Choice: 20.4% Choice: 5.67 times Choice: 11.77 times Choice: 13.0 times #16. What is the Fixed Assets Turnover Ratio for The Heart Hospital? Choice: 2.05 times Choice: 1.45 times Choice: 4.5 times Choice: 12.6 times