i want 14,15,19,20 solution please ??
EXHIBIT 4.20a STATEMENT OF OPERATIONS FOR LOUISVILLE COMMUNITY REVIEW QUESTIONS AND PLES Net assets released from restriction HOSPITAL 191 Louisville Community Hospital Statement of Operations for the Years Ended December 31 20X1 and 20X0 in thousands) Revenues Net patient service revenue 20x1 20x0 Total operating revenues $23,000 1.000 24,000 Expenses $19,000 800 19,800 Salaries and benefits Supplies and other expenses Depreciation General services Total operating expenses Operating income Nonoperating income Excess of revenue over expenses 13,000 7,000 2,500 200 22,700 9,000 6,000 2,000 100 17,100 1,300 4,000 2.700 2,500 5,300 5,200 Increase (decrease) in net assets $5,300 $5,200 category. Assume for this analysis that Longwood is a 350-bed facility and its adjusted discharges were 5,500 for 20X0 and 5,400 for 20x1. 14. Ratio analysis. Exhibits 4.20a and 4.20b show the statement of operations and balance sheet for Louisville Community Hospital for the years ended 20X0 and 20X1. Compute the following ratios for both years: current, quick, acid test, days in accounts receivable, days cash on hand, average payment period, operating revenue per adjusted discharge operating expense per adjusted discharge, salary and benefit expense as a percentage of total operating expense, operating margin, nonoperating revenue, return on total assets and net assets, total asset turnover, fixed asset turnover, age of plant, long-term debt to net assets, and net assets to total assets. Comment on Louisville's liquidity, effi- cient use of assets; revenue, expense, and profitability, and capital structure, citing at least 192 CHAPTER 4 FINANCIAL STATEMENT ANALYSIS EXHIBIT 4.206 BALANCE SHEET FOR LOUISVILLE COMMUNITY HOSPITAL Louisville Community Hospital Balance Sheet December 31, 20X1 and 20X0 (in thousands) 20x0 20X1 Current assets Cash and cash equivalents Net patient receivables Inventory Total current assets $700 4,000 950 5,650 $500 3,500 750 5,250 Noncurrent assets Plant, property, and equipment Gross plant, property, and equipment (less accumulated depreciation) Net plant, property, and equipment 26,500 (18,000) 8,500 24,000 (17,000) 7,000 Board-designated funds 18,000 9,000 Total assets 32,150 21,250 Current liabilities Accounts payable Accrued expenses Total current liabilities Long-term liabilities Bonds payable Total long-term liabilities 2,500 900 3,400 2,000 750 2.750 6,500 6,500 8,000 8,000 Net assets 22,250 10,500 Total liabilities and net assets $32,150 $21,250 one ratio per category. Use the national hospital industry benchmarks listed in Exhibit 4.16a for 125 beds, and assume that Louisville's adjusted discharges were 3,100 for 20X0 Ratio analysis. Exhibit 4.21 lists the financial ratios for 189-bed Collingswood Community Hospital. Assess the revenue, expense, and profitability, liquidity: activity, and capital structure of Collingswood for 20X1. Explain why these financial measures changed REVIEW QUESTIONS AND PROBLEMS 193 and 3,300 for 20X1. 15. between 20X0 and 20x1, and compare them to national industry benchmarks for Colling- swood's bed size, using the data from Exhibit 4.169. EXHIBIT 4.21 SELECTED FINANCIAL RATIOS FOR COLLINGSWOOD COMMUNITY HOSPITAL Ratio 20X1 20x0 3.05 0.65 201 0.35 60 48 215 62 120 48 $7,200 $6,934 43% $8,000 $7,300 50% Liquidity ratios Current ratio Acid test ratio Days in accounts receivable Days cash on hand Average payment period (days) Revenue, expense, and profitability ratios Operating revenue per adjusted discharge Operating expense per adjusted discharge Salary and benefit expense as a percentage of total operating expense Operating margin Nonoperating revenue Return on net assets Activity ratios Total asset turnover ratio Fixed asset turnover ratio Age of plant Capital structure ratios Debt service coverage ratio Long-term debt to net assets (equity) Net assets to total assets 0.04 0.15 0.13 0.08 0.04 0.04 0.90 2.20 1.20 2.75 11.15 8.45 2.75 1.40 0.42 4.00 0.55 0.65 16. Ratio analysis. Radnor Healthcare System, an 800-bed institution, is located in a highly competitive, urban market area. Using the financial ratios from Exhibit 4.22 for the current and previous years, evaluate Radnor's financial condition, focusing on revenue expense, and profitability: liquidity, activity, and capital structure ratios, and compare them to national industry benchmarks for Radnor's bed size, using the data from Exhibit 4.16a. 17. Ratio analysis, unknown bed size. Compare Spring Hill Community Hospital's liquidity revenue, expense, and profitability, activity; and capital structure ratios with its national industry benchmarks, using the data from Exhibits 4.16a and 4.23. EXHIBIT 4.22 SELECTED FINANCIAL RATIOS FOR RADNOR HEALTHCARE SYSTEM 20X1 20XO Ratio 1.85 1.50 0.43 70 155 2.10 1.55 0.45 55 145 55 60 $12,500 $12,800 55% $11,000 $10,500 50% Liquidity ratios Current ratio Quick ratio Acid test ratio Days in accounts receivable Days cash on hand Average payment period (days) Revenue, expense, and profitability ratios Operating revenue per adjusted discharge Operating expense per adjusted discharge Salary and benefit expense as a percentage of total operating expense Operating margin Nonoperating revenue Return on assets Activity ratios Total asset turnover ratio Fixed asset turnover ratio Age of plant Capital structure ratios Long-term debt to equity Equity to total assets Debt service coverage ratio (0.05) 0.06 0.02 0.02 0.07 0.06 1.12 2.55 11.75 0.99 2.35 11.03 0.45 0.55 2.85 0.56 0.71 3.05 18. Ratio analysis, unknown bed size. Exhibit 424 displays the financial ratios for St. Joe Hospital. Compare its liquidity; revenue, expense, and profitability, activity, and capital 19. Ratio analysis. Swift Community Hospital, a 310-bed facility, is a sole provider hospital in a rural New England area serving a large market. Recently, a wealthy philanthropist made a major contribution to the hospital's long-term investment fund. Assess Swift's profitability, liquidity, activity, and capital structure ratios. Using the financial ratios from Exhibit 4.25 for the current and previous years, evaluate Swift's financial condition, and also compare its ratios to national industry benchmarks for its bed size, using the data REVIEW QUESTIONS AND PROBLEMS structure ratios to national industry benchmarks for all hospitals, using the data from 20. Ratio analysis. Allen Community Hospital is a small, 95-bed hospital. The hospital 195 Exhibit 4.16a. from Exhibits 4.16a. just completed a major renovation of its facility, which has helped to attract new physi- cians and patients to the hospital. Assess Allen's revenue, expense, and profitability liquidity; activity, and capital structure ratios. Using the financial ratios from Exhibit 4.26 for the current and previous years, evaluate Allen's financial condition and also compare its ratios to national industry benchmarks for its bed size, using the data from Exhibits 4.16a. EXHIBIT 4.20a STATEMENT OF OPERATIONS FOR LOUISVILLE COMMUNITY REVIEW QUESTIONS AND PLES Net assets released from restriction HOSPITAL 191 Louisville Community Hospital Statement of Operations for the Years Ended December 31 20X1 and 20X0 in thousands) Revenues Net patient service revenue 20x1 20x0 Total operating revenues $23,000 1.000 24,000 Expenses $19,000 800 19,800 Salaries and benefits Supplies and other expenses Depreciation General services Total operating expenses Operating income Nonoperating income Excess of revenue over expenses 13,000 7,000 2,500 200 22,700 9,000 6,000 2,000 100 17,100 1,300 4,000 2.700 2,500 5,300 5,200 Increase (decrease) in net assets $5,300 $5,200 category. Assume for this analysis that Longwood is a 350-bed facility and its adjusted discharges were 5,500 for 20X0 and 5,400 for 20x1. 14. Ratio analysis. Exhibits 4.20a and 4.20b show the statement of operations and balance sheet for Louisville Community Hospital for the years ended 20X0 and 20X1. Compute the following ratios for both years: current, quick, acid test, days in accounts receivable, days cash on hand, average payment period, operating revenue per adjusted discharge operating expense per adjusted discharge, salary and benefit expense as a percentage of total operating expense, operating margin, nonoperating revenue, return on total assets and net assets, total asset turnover, fixed asset turnover, age of plant, long-term debt to net assets, and net assets to total assets. Comment on Louisville's liquidity, effi- cient use of assets; revenue, expense, and profitability, and capital structure, citing at least 192 CHAPTER 4 FINANCIAL STATEMENT ANALYSIS EXHIBIT 4.206 BALANCE SHEET FOR LOUISVILLE COMMUNITY HOSPITAL Louisville Community Hospital Balance Sheet December 31, 20X1 and 20X0 (in thousands) 20x0 20X1 Current assets Cash and cash equivalents Net patient receivables Inventory Total current assets $700 4,000 950 5,650 $500 3,500 750 5,250 Noncurrent assets Plant, property, and equipment Gross plant, property, and equipment (less accumulated depreciation) Net plant, property, and equipment 26,500 (18,000) 8,500 24,000 (17,000) 7,000 Board-designated funds 18,000 9,000 Total assets 32,150 21,250 Current liabilities Accounts payable Accrued expenses Total current liabilities Long-term liabilities Bonds payable Total long-term liabilities 2,500 900 3,400 2,000 750 2.750 6,500 6,500 8,000 8,000 Net assets 22,250 10,500 Total liabilities and net assets $32,150 $21,250 one ratio per category. Use the national hospital industry benchmarks listed in Exhibit 4.16a for 125 beds, and assume that Louisville's adjusted discharges were 3,100 for 20X0 Ratio analysis. Exhibit 4.21 lists the financial ratios for 189-bed Collingswood Community Hospital. Assess the revenue, expense, and profitability, liquidity: activity, and capital structure of Collingswood for 20X1. Explain why these financial measures changed REVIEW QUESTIONS AND PROBLEMS 193 and 3,300 for 20X1. 15. between 20X0 and 20x1, and compare them to national industry benchmarks for Colling- swood's bed size, using the data from Exhibit 4.169. EXHIBIT 4.21 SELECTED FINANCIAL RATIOS FOR COLLINGSWOOD COMMUNITY HOSPITAL Ratio 20X1 20x0 3.05 0.65 201 0.35 60 48 215 62 120 48 $7,200 $6,934 43% $8,000 $7,300 50% Liquidity ratios Current ratio Acid test ratio Days in accounts receivable Days cash on hand Average payment period (days) Revenue, expense, and profitability ratios Operating revenue per adjusted discharge Operating expense per adjusted discharge Salary and benefit expense as a percentage of total operating expense Operating margin Nonoperating revenue Return on net assets Activity ratios Total asset turnover ratio Fixed asset turnover ratio Age of plant Capital structure ratios Debt service coverage ratio Long-term debt to net assets (equity) Net assets to total assets 0.04 0.15 0.13 0.08 0.04 0.04 0.90 2.20 1.20 2.75 11.15 8.45 2.75 1.40 0.42 4.00 0.55 0.65 16. Ratio analysis. Radnor Healthcare System, an 800-bed institution, is located in a highly competitive, urban market area. Using the financial ratios from Exhibit 4.22 for the current and previous years, evaluate Radnor's financial condition, focusing on revenue expense, and profitability: liquidity, activity, and capital structure ratios, and compare them to national industry benchmarks for Radnor's bed size, using the data from Exhibit 4.16a. 17. Ratio analysis, unknown bed size. Compare Spring Hill Community Hospital's liquidity revenue, expense, and profitability, activity; and capital structure ratios with its national industry benchmarks, using the data from Exhibits 4.16a and 4.23. EXHIBIT 4.22 SELECTED FINANCIAL RATIOS FOR RADNOR HEALTHCARE SYSTEM 20X1 20XO Ratio 1.85 1.50 0.43 70 155 2.10 1.55 0.45 55 145 55 60 $12,500 $12,800 55% $11,000 $10,500 50% Liquidity ratios Current ratio Quick ratio Acid test ratio Days in accounts receivable Days cash on hand Average payment period (days) Revenue, expense, and profitability ratios Operating revenue per adjusted discharge Operating expense per adjusted discharge Salary and benefit expense as a percentage of total operating expense Operating margin Nonoperating revenue Return on assets Activity ratios Total asset turnover ratio Fixed asset turnover ratio Age of plant Capital structure ratios Long-term debt to equity Equity to total assets Debt service coverage ratio (0.05) 0.06 0.02 0.02 0.07 0.06 1.12 2.55 11.75 0.99 2.35 11.03 0.45 0.55 2.85 0.56 0.71 3.05 18. Ratio analysis, unknown bed size. Exhibit 424 displays the financial ratios for St. Joe Hospital. Compare its liquidity; revenue, expense, and profitability, activity, and capital 19. Ratio analysis. Swift Community Hospital, a 310-bed facility, is a sole provider hospital in a rural New England area serving a large market. Recently, a wealthy philanthropist made a major contribution to the hospital's long-term investment fund. Assess Swift's profitability, liquidity, activity, and capital structure ratios. Using the financial ratios from Exhibit 4.25 for the current and previous years, evaluate Swift's financial condition, and also compare its ratios to national industry benchmarks for its bed size, using the data REVIEW QUESTIONS AND PROBLEMS structure ratios to national industry benchmarks for all hospitals, using the data from 20. Ratio analysis. Allen Community Hospital is a small, 95-bed hospital. The hospital 195 Exhibit 4.16a. from Exhibits 4.16a. just completed a major renovation of its facility, which has helped to attract new physi- cians and patients to the hospital. Assess Allen's revenue, expense, and profitability liquidity; activity, and capital structure ratios. Using the financial ratios from Exhibit 4.26 for the current and previous years, evaluate Allen's financial condition and also compare its ratios to national industry benchmarks for its bed size, using the data from Exhibits 4.16a
