Develop a chart of Director's financial presentation based on the Case Example, displayed in our text in Appendix Chapter 9-A, for Harris Memorial Hospital and Harris Community Foundation's Audited Financial Statements and Footnotes. In preparing your analysis, be sure to use theformatin Chapter 13, (Table13-7) and (Figure13-4) to display youranalysis and explanation for the comparative yearsDecember 31, 20X7 and 20X6.

The images below are of the Appendix 9-A, Table 13-7 and Figure 13-4.

These are the fields I have to answer for 20X7 and 20X6.

Profitability

Total margin percentage

Operating margin percentage

Nonoperating revenue %

ROE percentage

Liquidity

Current

Days in accounts receivable

Days cash on hand (short term)

Capital structure

Equity financing percentage

Long-term debt to equity %

Cash flow to debt percentage

Times interest earned

Activity

Total asset turnover

Fixed asset turnover

Current asset turnover

Other ratios

Average age of plant

CASE 9A

provide a basis for our audit opinion. subsidiaries at December 31, 20X7 and 20X6, and In our opinion, the financial statements referred the combined changes in their net assets and their to above present fairly, in all material respects, the cash flows for the years then ended in conformity combined financial position of Harris Memorial with U.S. generally accepted accounting principles. TABLE 9A-1 Harris Memorial Hospital and Harris Community Foundation Combined Balance Sheets (in Thousands) December 31, 20X7 December 31, 20X6 Assets Current assets Cash and cash equivalents $82,815 $59,696 Assets limited as to use, current portion 5,327 5, 088 Accounts receivable Patients, less allowance for doubtful accounts 70,025 59,939 ($25,302 in 20X7 and $23,014 in 20X6) Other 28,990 24,995 Supplies 7,078 6,663 Total current assets 194,235 156,381 Assets limited as to use For donor-restricted purposes 84,440 67,826 Board designated for specific purposes 382,835 378,413 Held by trustees under bond agreements 51,038 25,937 518,313 472,176 Less current portion 5,327 5,088 512,986 467,088 Property and equipment, net 563,349 458,829 Other assets 34,476 34,302 Total assets $1,305,046 $1, 1 16,600 Liabilities and net assets Current liabilitiesAccounts payable $32,572 $24,631 Accrued expenses and other liabilities 58,878 53 , 725 Due to third-party payers 7,380 12,633 Current maturities of long-term debt 4,692 5,908 Total current liabilities 103,522 96,897 Long-term debt, less current maturities 439,597 332,354 Contingent professional liabilities 33,260 48,487 Due to broker 15,128 19,608 Other liabilities 20,713 5,298 Postretirement benefit obligation, other than pensions 8,207 7,694 Total liabilities 620,427 510,338 Net assets Unrestricted 600,179 538,436 Temporarily restricted 55,213 40,393 Permanently restricted 29,227 27,433 Total net assets 684,619 606,262 Total liabilities and net assets $1,305,046 $1,116,600 TABLE 9A-2 Harris Memorial Hospital and Harris Community Foundation Combined Statements of Operations (in Thousands) December 31, 20X7 December 31, 20X6 Operating revenues and other support Net patient service revenue $829,005 $774,662 Provision for doubtful accounts (55,851) (57,975) Net patient service revenue less provision for doubtful accounts 773,154 716,687 Other operating revenue 27,055 29,334 Total operating revenue 800,209 746,021 (continues)TABLE 9A-2 Harris Memorial Hospital and Harris Community Foundation Combined Statements of Operations (in Thousands) (continued) Operating expenses Salaries and wages $371,449 $329,668 Employee benefits 81,532 77,231 Supplies and purchased services 228,244 225,497 Advertising 3,072 2,376 Staff enrichment 10,767 8,591 Occupancy cost 14,346 13,442 Depreciation 44,392 41,627 Interest 10,974 6,145 Operating expenses 764,776 704,577 Excess of revenue over expenses 35,433 41,444 Nonoperating gains (losses) Contributions, gifts, and bequests 3,189 1,318 Net assets released from restrictions for research expenditures 14,070 14,474 Research, education, and other nonoperating expenses (22,980) (24,773) Change in interest rate swap value and put agreements 1,578 9,397 Investment income 30,453 18,402 26,310 18,818 Excess of revenues and gains over expenses and losses $61,743 $60,262 TABLE 9A-3 Harris Memorial Hospital and Harris Community Foundation Combined Statements of Changes in Net Assets (in Thousands) December 31, 20X7 December 31, 20X6 Unrestricted net assets Excess of revenues and gains over expenses and losses $61,743 $60,262 Net assets released from restrictions for capital expenditures 119 239 of 586Cumulative effect of change in accounting principle (3,943) Increase in unrestricted net assets 61,743 56,438 Temporarily restricted net assets Contributions, gifts, and bequests 20,435 15,512 Investment income 8,455 3,972 Net assets released from restrictions for research expenditures (14,070) (14,474) Net assets released from restrictions for capital expenditures (119) Increase in temporarily restricted net assets 14,820 4,891 Permanently restricted net assets Contributions, gifts, and bequests 1,794 3,218 Increase in permanently restricted net assets 1,794 3,218 Net assets at beginning of year 606,262 541,715 Net assets at end of year $684,619 $606,262 TABLE 9A-4 Harris Memorial Hospital and Harris Community Foundation Combined Statements of Cash Flows (in Thousands) December 31, 20X7 December 31, 20X6 Operating activities Increase in net assets $78,357 $64,547 Adjustments to reconcile increase in net assets to net cash provided by operating activities Change in net unrealized gains and losses on investment (26,358) 11,432 securities Cumulative effect of change in accounting principle (3,943) Depreciation 44,392 41,627 Gain on sale or disposal of assets, net (6,119) Provision for bad debts 55,851 57,975 Change in interest rate swap value and put agreements (1,578) (9,397) (continues)TABLE 9A-4 Harris Memorial Hospital and Harris Community Foundation Combined Statements of Cash (continued) Flows (in Thousands) December 31, 20X7 December 31, 20X6 Changes in operating assets and liabilities Assets limited as to use (19,779) (14,274) Accounts receivable (65,937) (51,251) Other assets (7,071) (43) Supplies (415) 840 Accounts payable 7,941 10,613 Accrued expenses and other liabilities 20,568 8,430 Due to third-party payers (5,253) (4,877) Contingent professional liabilities (15,227) 3,743 Postretirement benefit obligation, other than pensions 513 456 Net cash provided by operating activities 59,885 115,878 Investing activities Property and equipment acquired (142,793) (159,943) Cash used in investing activities (142,793) (159,943) Financing activities Repayment of long-term debt (177,294) (5,545) Proceeds from borrowing 283,321 57, 614 Net cash provided by financing activities 106,027 52,069 Net increase in cash and cash equivalents 23, 119 8,004 Cash and cash equivalents at beginning of year 59,696 51,692 Cash and cash equivalents at end of year $82,815 $59,696TABLE 13-7 Forecasted Financial Ratios for OHF 20X7 20X8 20X9 20XO 20X1 rofitability Total margin percentage 3.9 49 4.9 5.0 5.0 Operating margin percentage 1.3 2.3 2.0 1.7 1.4 Nonoperating revenue % 2.6 2.9 3.0 3.2 3.5 ROE percentage 8.2 9.7 8.8 8.5 8.0 Liquidity Current 1.11 1.11 1.09 1.09 1.09 Days in accounts receivable 54.8 54.8 54.8 54.8 54.8 Days cash on hand (short term) 20.0 20.0 20.0 20.0 20.0 Capital structure Equity financing percentage 44.1 46.4 48.7 50.9 53.0 Long-term debt to equity % 63.3 55.6 49. 43.2 38.4 Cash flow to debt percentage 14.9 17.4 18.0 18.8 19.6 Times interest earned 2.65 3.19 3.31 3.43 3.59 Activity Total asset turnover 0.93 0.91 0.89 0.87 0.85 Fixed asset turnover 2.32 2.37 2.43 2.52 2.63 Current asset turnover 4.44 4.44 4.44 4.44 4.44 Other ratios Average age of plant 8.8 9.3 9.7 10.2 10.7 high price structure, which it may not be able to maintain. A 2% growth rate is predicated on zero Salaries and wages: In the labor intensive healthcare growth in net prices but a 2% growth in volume of industry the second most important assumption in services. A 2% growth in services seems reason- any financial forecast is salaries and wages. Salary able given previous growth in outpatient and clinic and wage cost are the product of three factors: services. The assumptions made about revenue Salary and wage costs = Volume of services growth (volume and price) are the most import- ant variables in terms of impact on the financial x Staffing ratios X Wage rates plan. Small changeOmega Health Foundation 20X7 Return on equity % 8.4 Operating Total asset Nonoperating Equity margin % turnover revenue % financing % 1.3 0.93 2.7 0.44 FIGURE 13-4 Financial 338 of 586 mega Health Foundation