Question
Following is a condensed unadjusted Trial Balance for SSA Hospital as at 31 December 2019. (amounts in thousands) Debit ($) Credit ($) Cash 1,600 Cash
Following is a condensed unadjusted Trial Balance for SSA Hospital as at 31 December 2019. (amounts in thousands)
| Debit ($) | Credit ($)
|
Cash | 1,600 |
|
Cash equivalent | 500 |
|
Marketable securities | 800 |
|
Patient Accounts Receivable | 7,000 |
|
Allowance for uncollectible receivable |
| 1,500 |
Medical and supplies inventories | 13,000 |
|
Prepaid Insurance | 50 |
|
Building and equipment | 40,000 |
|
Accumulated depreciation for building and equipment |
| 8,000 |
Accounts Payable |
| 9,000 |
Accrued expenses |
| 1,200 |
Estimated third party settlement (current due) |
| 2,000 |
Long term debt |
| 30,000 |
Mortgage for building |
| 10,000 |
Unrestricted net assets, beginning of the year |
| 28,000 |
Patient service revenue (gross) |
| 75,000 |
Provision for contractual adjustment | 6,000 |
|
Provision for charity care | 2,000 |
|
Operating expenses | 45,000 |
|
Depreciation expenses | 2,000 |
|
Interest expenses | 2,500 |
|
Provision for bad debt | 1,500 |
|
Other expenses | 3,000 |
|
Investment income |
| 2,000 |
Rent Revenue |
| 500 |
Gain/Loss on disposal of assets | 400 |
|
Additional information:
The following transaction was not recorded in the trial balance:
- Issued $2,000 bond payable at the end of year
- 20% of prepaid insurance was used during the year
- Billed the patient for the service performed $1,000 at the end of the year
- The medical and supplies inventories at the of the year show a balance of $5,000
- The depreciation expenses at the end of year is $500
- Accrued operating expenses amounted to $40 was incurred at the end of the year
Additional information:
a. $4,000 of the principal long term debt was paid during the year
b. The current portion of long term debt due is $3,000
Required:
Based on the information given above, compute the following:
- Operating gain
- The excess of revenue over expenses
- The unrestricted net asset balance at the end of the year
- Current ratio
- Number of days patient revenue in receivable
- Number of days cash on hand
- Operating margin
- Long term debt to capitalization ratio
- Debt service coverage
- Times interest earned
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