• Does the practice generate enough cash to cover its current obligations?
• Is the practice likely to be able to meet its long-term obligations as they become due?
• Is the practice increasing its patient encounters and collecting its accounts receivable in a timely manner?
• What is the practice's net worth, or equity, and is it improving?Is the practice improving its profitability on a sustainable basis?
• How might the hospital's acquisition ofDr. Fiddle's practice impact the futurefinancial performance of the practice itself?
• All factors considered, do you think it is a good idea for the hospital to acquirethe practice?Why or why not?

I NEED STEP BY STEP ASSISTANCE TO INCORPORATE EACH RATIO AND FINANCIAL STATEMENT INTO MY SLIDE IN ORDER TO ANSWER THE ABOVE QUESTIONS.

Slide presentationshould incorporate the financial ratios you calculated, describe what the ratios sayabout the state of the practice,and appropriately use accounting terminology.

ACCOUNT FOR BUSINESS Making the Call Does the practice generate enough cash to cover its current obligations? (Revenue and Expense clipart - Google Search", 2017). Is the practice likely to be able to meet its long-term obligations as they become due? Solvency ratio reflects that the company is unlikely to meet its long- term liability. Is the practice increasing its patient encounters and collecting its accounts receivable in a timely manner? (Nurse at a computer clipart collection, 2017). What is the practice's net worth, or equity, and is it improving? Is the practice improving its profitability on a sustainable basis? The practice is increasing its profitability. How might the hospital's acquisition of Dr. Fiddle's practice impact the future financial performance of the practice itself? Yes it is a Good idea. Hospital support The land the practice is on is considered prime. The practice send its patients needing inpatient services and outpatient surgical procedure to Stronger hospital. Rental space All factors considered, do you think it is a good idea for the hospital to acquire the practice? Why or why not? I have studied all the quantitative and qualitative factors and have determined purchasing of Dr. Fiddles practice will benefit Stronger hospital. Stronger Hospital accounting staff can assist with the day to day operations and this frees up Dr. Fiddle to work on her research and with her patients. Benefit from the value of the land and the space in the building. References Nurse at a computer clipart collection. (2017). Retrieved from http://diysolarpanelsv.com/images/clipart-nurses-and-patients-17.gif Revenue and expense clipart - Google Search. (2017). Google.com. Retrieved 2 September 2017, from https://www.google.com/search? q=revenue+and+expense+clipart&tbm=isch&imgil=CV2kJcGZ7f6AHM%253A %253BBe2P2rg0E9Yg1M%253Bhttp%25253A%25252F %25252Fwww.canstockphoto.com%25252Frevenue-versus-expense17674940.html&source=iu&pf=m&fir=CV2kJcGZ7f6AHM%253A %252CBe2P2rg0E9Yg1M%252C_&usg=__t4sgwHq-a3k9oE5dNAQxBXEg5qo %3D&biw=1024&bih=598&ved=0ahUKEwjW9uExYXWAhVM5oMKHQpCCmIQyjcIRA&ei=vSKqWZakLszMjwSKhKmQBg#imgrc=CV2kJcG Z7f6AHM: Staff, I. (2017). How do I take qualitative factors into consideration when using fundamental analysis?. Investopedia. Retrieved 2 September 2017, from http://www.investopedia.com/ask/answers/05/060605.asp Strode, R., & Beith,, C. (2017). Buying and selling physician practices: Haven't we seen this before. Retrieved from http://files.mwe.com/info/pubs/ASGE_1209.pdf? PublicationTypes=d4366db4-cfb3-4a31-95e6-f18e3d273c8a Account for Business, Making the Call Don's Site-Visit Notes Dr. Fiddle seems extremely intrigued by the new medical diagnostic device she bought from a colleague who is retiring to Bermuda. It predicts if a patient is at risk for chronic obesity simply by scanning his or her forehead, and has the potential to revolutionize the worldwide market for medical diagnostics related to diabetes and weight loss. Dr. Fiddle has been spending an increasing percentage of her day developing this experimental device in anticipation of obtaining a patent and commercializing it someday. Most of the large non-operating gain on the 2014 income statement relates to a one-time insurance distribution by the FDIC after it took control of a failed commercial bank where Dr. Fiddle's practice used to maintain its checking account. The office manager confided that Dr. Fiddle voluntarily took a large pay cut in 2014 because she wanted to improve the practice's profitability in anticipation of a sale to Memorial Hospital or another buyer. Dr. Fiddle's practice is responsible for more than 250 inpatient admissions and 1,100 outpatient diagnostic and surgical procedures per year at Stronger Memorial Hospital. Although Dr. Fiddle is very loyal to Stronger Memorial Hospital because she was born there and her father was once chief of surgery, she is committed to selling her practice and will offer it to Community General Hospital, an aggressive for-profit competitor, if Stronger Memorial Hospital does not make a reasonable offer. Local medical office space is at a premium and Dr. Fiddle's office is considered to be in a prime location in a growing community adjacent to Stronger Memorial Hospital. Her practice space can easily accommodate another physician, especially if she terminates the sub-lease with the psychologist who currently rents there. Copyright 2015 College for America at Southern New Hampshire University. All rights reserved. PROJ-87876 Felicia Fiddle, MD Income Statement Year Ended December 31 Operating revenue: Gross patient service revenue Less: Contractual allowances Net patient service revenue Other operating revenue Total operating revenue 2014 2013 $ 775,000 465,000 $ 310,000 18,000 $ 328,000 $ 842,000 505,200 $ 336,800 18,000 $ 354,800 Operating expenses: Salaries and wages Employee benefits Supplies Purchased services Other operating expenses Provision for bad debts Depreciation and amortization Interest Total expenses 139,279 13,041 17,376 29,200 105,076 18,440 17,650 2,750 $ 342,812 177,320 13,041 17,058 28,756 117,806 11,500 12,500 819 $ 378,800 Excess of revenue over expenses from operations Nonoperating gains: Investment income Net income (loss) $ (14,812) 15,325 $ 513 $ (24,000) 1,445 $ (22,555) Felicia Fiddle, MD Balance Sheet Year Ended December 31 2014 2013 Assets Current assets: Cash and investments Patient accounts receivable, net of allowance for doubtful accounts Supplies inventory Total current assets $ 19,000 75,675 $ 23,650 56,135 30,100 $ 124,775 25,340 $ 105,125 Other assets Property and equipment, net of accumulated depreciation Investment in new medical diagnostic device Total assets 47,785 16,891 $ 189,451 65,435 $ 170,560 Liabilities and equity (deficit) Current liabilities: Accounts payable Accrued salaries and expenses Current portion of estimated malpractice liability Due to third-party payors Total current liabilities $ 31,254 15,200 20,000 21,345 $ 87,799 $ 19,450 7,600 20,000 15,350 $ 62,400 Estimated malpractice liability, net of current portion Pension liability Other liabilities Total liabilities 60,000 22,355 11,124 $ 181,278 80,000 15,000 5,500 $ 162,900 Equity Total liabilities and equity 8,173 $ 189,451 7,660 $ 170,560 Account for Business, To Buy or Not to Buy? Key Ratios to Analyze Financial Statements Ratio Definition 2014 Calculation 2013 Calculation Trend1 (Current assets)/ (Current liabilities) \"124,775/87,799 \"105,125/62400 =1.69\" times (Financial Statement Analysis, 2017). W 105125-25340 62,400 =1.28 times (Financial Statement Analysis, 2017). W \"181,278 / 189,451 =0.96 or 96% \"162,900/170,560 0.96 0r 96% B \"0.9568 times\" (Financial Statement Analysis, 2016 p 221-228). \"0.955 times \" (Financial Statement Analysis, 2016 p 221-228). 513+2750/2750= \"1.19 times, -22555+819/819 = \"- 26.53 times Suggests the number of times the interest obligation of the company is covered by the pro fits available to pay interest charges\" (Financial Statement Analysis, 2016 p 221-228). Liquidity Current Quick, or acid test (Current assets - supplies inventory)/ (Current liabilities) =1.42 times\" (Financial Statement Analysis, 2017). \"124775-30100 87,779 =1.08\" times (Financial Statement Analysis, 2017). Debt Management Ratios Debt to total assets2 Times interest earned (Total debt)/(Total assets) (Net income plus interest charges)/(Interest charges) Suggests the number of times the interest obligation of the company is covered by the pro fits available to pay interest charges\" (Financial Statement Analysis, 2016 p 221-228). W 1 In this column, indicate whether the financial statements trended better (B) or worse (W) from 2013 to 2014 2 \"Debt\" in this case is synonymous with \"total liabilities\" Copyright 2015 College for America at Southern New Hampshire University. All rights reserved. PROJ-83249 Account for Business, To Buy or Not to Buy? Key Ratios to Analyze Financial Statements Asset Management Ratios Inventory turnover Average collection period Fixed assets turnover3 Total assets turnover (Net patient service revenue)/(Supplies inventory) (Accounts receivable)/(Net patient service revenues per day) (Net patient service revenue)/(Fixed assets) 310,000/30100= 10.30 times 336800/25240 =13.29 times W 75675 310000/365 89.1 days 310,000/47785 = 6.49 times 56135 3368,00/365 =60.84 days 336,800/65,435 5.14 times W (Net patient service revenue)/(Total assets) 310,000/189,451 = 1.64 times 336,800/170,560 =1.98 times W (Net income)/(Net patient service revenue) 513/310000 =\"0.0017 which is equal to 0.17%\" -22,555/336,800 \"=-0.067 or -0.07%\" (Financial Statement Analysis, 2016 p 221-228). B -22,555/170,560 = \"-0.13 or -13% Return on its investment in total Assets\" (Financial Statement Analysis, 2016 p 221-228). -22,555/7660 =-2.95 \"-295%\" (Financial Statement Analysis, 2016 p 221-228). B B Profitability Profit margin on revenue (Financial Statement Analysis, 2016 p 221-228). Return on total assets (Net income)/(Total assets) Return on equity (Net income)/(Equity) 513/189,451 = \"0.0027 or .27% Return on its investment in total Assets\" (Financial Statement Analysis, 2016 p 221-228). 513/8173 =0.063 \"6.3%\" (Financial Statement Analysis, 2016 p 221-228). B 3 \"Fixed assets\" in this case refer to \"property and equipment\" Copyright 2015 College for America at Southern New Hampshire University. All rights reserved. PROJ-83249 Account for Business, To Buy or Not to Buy? Key Ratios to Analyze Financial Statements References Financial Statement Analysis. (2017) (p. 1). Retrieved from http://cfaresources.s3.amazonaws.com/BA%20Communications/Account%20for %20Business/Financial_Accounting_DeMYSTiFieD%20Ch13.pdf Copyright 2015 College for America at Southern New Hampshire University. All rights reserved. PROJ-83249