Hospital Balance Sheet:

Hospital Statement of Operations:

Hospital Statement of Cash Flows:

Determine the below ratios for 2011 and 2012 and compare the hospitals financial performance year to year and explain what each ratio measures.

A. Current Ratio

B. Average Payment Period

C. Operating Margin

D. Total Margin

E. Return on Net Assets

F. Cash Flow to Debt

2012 2011 ASSETS Current Assets: Cash and cash equivalents Short-term investments Accounts receivable, net Inventories $74 147 727 137 476 $676 $ 100 Total current assets $ 975 Investments 125 Property and Equipment: $ 56 70 $ 126 (45) Medical and office equipment Vehicles $ 54 47 $101 (24) $ 77 Total Less: Accumulated depreciation Net property and equipment Total assets $1,181 $853 LIABILITIES AND EQUITY Current Liabilities: Notes payable Accounts payable Accrued expenses $ 13 40 496 $ 549 13 21 337 $371 Total current liabilities Long-term debt Total liabilities 167 $538 154 $ 703 $ 478 $1,181 Equity (net assets) $315 Total liabilities and equity $853