Hello, would you be able to help me with number one and number 4

Ratio Analysis Project: Refer to Megatropolis Hospital's financial statements below for calculating the ratios requested in problems 1-6. Megatropolis Hospital Statement of Operations For the Year Ended December 31, 2010 Revenues, Gains, Other Support Net patient service revenue Other revenue Total Revenue $ 1,500,000 200,000 1,700,000 Expenses Nursing Services Administrative Services Depreciation Other Expenses Total Expenses 1,200,000 200,000 100,000 50,000 1,550,000 Operating Income 150,000 Investment Income 50,000 Excess of revenues over expenses 200,000 Increase in Unrestricted Net Assets $ 200,000 $ 50,000 350,000 400,000 $ 900,000 475,000 425,000 Megatropolis Hospital Balance Sheet As of December 31, 2010 (2009 omitted) Assets Current Assets Cash and cash equivalents Net patient receivables Total Current Assets Properties and Equipment Gross properties and equipment Less accumulated depreciation Net Properties and Equipment Total Assets $ Liabilities and Net Assets Current Liabilities 825,000 Accounts Payable Salaries Payable Total Current Liabilities $ 200,000 50,000 250,000 $ Notes Payable 200,000 Unrestricted Net Assets 375,000 Total Liabilities and Net Assets 1. $ 825,000 What is Megatropolis Hospital's operating margin? Megatropolis Hospital operating margin is equivalent to the operating income. Therefore, it would be: 8.82% Operating income= 150,000 / Total Revenue 1,700,000 = 8.82% 2. What is Megatropolis Hospital's days in accounts receivable? Megatropolis Hospitals day in accounts receivable is determined by the days in account and the net patients received, and the number of days. Therefore, the answer would be: 8.516 Net patients received= 350,000 X 365/ 1,500,000 = 8.516 days 3. What is Megatropolis Hospital's long-term debt to net assets ratio? Long term debt ratio would be: 53% Long term debt= 200,000/ unrestricted net Assets= 375,000 = 0.53 4. What is Megatropolis Hospital's age of plant? Megatropolis Hospital's age of plant is: 4.75 years Accumulated Depreciation= 475,000/ Depreciation Expenses= 100,000 = 4.75 5. What is Megatropolis Hospital's fixed asset turnover ratio? Megatropolis Hospital's fixed asset ratio is: 4 Total Revenue= 1,700,000/ Net Fixed Assets= 425,000 =4 6. What is Megatropolis Hospital's days cash on hand? Megatropolis Hospital's days cash on hand is: 12. 586 days ( 1, 550,000- 100,000)/ 365 = 50,000 1,450,000/ 365 = 50,000 3972.6027 = 12.586 Listed below are the financial ratios for Calvin Community Clinic. Calvin improved its overall financial condition from 2008 to 2009. Identify these areas of improvement and attempt to explain how this improvement came about. Calvin Community Clinic Financial Ratios Current ratio Acid test ratio Days in accts receivable Average payment period Days cash on hand 2009 2.20 0.25 45 days 43 days 15 days 2008 2.10 0.10 60 days 45 days 5 days Fixed asset turnover Total asset turnover 3.58 1.10 2.54 1.04 Operating margin Return on total assets 0.10 0.20 0.03 0.12 Long-term debt to net assets 1.10 2.18 Net assets to total asset Debt service coverage 1 3.20 0 2.10 Age of plant 5.70 3.50 Use the information in the table below for problems 7-15. The financial information presented below for ABC Healthcare was filed with the Department of Insurance. Cash and Short-Term Investments Receivables Other Current Assets Total Current Assets Current Year $ 34,094,076 13,036,037 3,650,374 $ 50,780,487 Long-Term Investments Property, Plant and Equipment Total Assets $ 134,233,202 1,108,330 $ 186,122,019 $ 126,679,509 2,216,891 $ 162,179,610 Current Liabilities Other Liabilities Net Worth Total Liabilities and Net Worth $ $ Member Months 70,301,625 4,017,789 111,802,605 $ 186,122,019 Previous Year 11,863,992 15,112,834 6,306,384 $ 33,283,210 $ 66,950,203 3,949,442 91,279,965 $ 162,179,610 4,820,351 4,721,314 Premium Revenue Medicaid Revenue Investment Income Total $ 512,600,104 58,969,632 8,637,915 $ 580,207,651 $ 515,079,684 63,979,870 6,640,969 $ 585,700,523 Physician Services Other Professional Inpatient Incentive Pool Outpatient Pharmacy Access Fees Reinsurance Coordination of Benefits Total Medical & Hospital 157,313,074 23,733,163 110,813,471 1,834,583 103,981,202 62,764,866 341,685 2,321,544 (434,217) $ 462,669,371 148,868,294 21,526,611 113,989,688 4,677,527 97,746,260 67,567,497 402,285 1,682,121 (80,097) $ 456,380,186 Administration Total Expenses 76,772,846 $ 539,442,217 76,807,222 $ 533,187,408 40,765,434 12,685,285 52,513,115 17,682,052 Income Before Tax - Tax Net Income 7. $ 28,080,149 $ 34,831,063 Information in the insurance filing shows that 101,909 hospital patient days of care were provided to members in the current year. How many patient days per 1,000 members were provided? 21.14 patients were provided. 8. What was the average subscriber revenue realized Per Member Per Month (PMPM) in both the current year and the previous year? Average subscribers for the current year and previous year are listed below: Current= $118.57 Previous= $120.13 9. Why did investment income increase in the current year? Income increased in the current year by $1,996,946 because of the additional investment made by the company of $ 29,783,777. 10. What was the average yield on cash and investments during the current year? The average yield on cash and investment during the current year is: 5.13% (investment income/ total investment) X 100= 5.13 11. Net Worth increased by $20,522,640 during the current year, but Net Income was $28,080,149. What might have accounted for this difference? The difference is based upon the net worth and net income made during the year. 12. Is ABC Healthcare more or less debt-financed than the average for health plans (refer to the textbook chapter for industry averages)? No, ABC Healthcare does not have more debt financed that they are supposed to. 13. Calculate ABC's total Days Cash on Hand (ignore depreciation and other non-cash expenses). Does ABC have more or less cash than industry averages? ABC has more cash than industry averages. 14. What is the main reason that ABC's margins declined in the current year? They experienced a decline is because they also had a decrease in one of their premium plans. Therefore, everything else just decreased as well. 15. Physician service expense PMPM increased by what dollar amount in the current year? Their service increased by $ 8,444,780