In columns L$-$Q$,$ you will find $5$ years$$ consolidated balance sheet and income statement of a large local hospital.

What is your opinion about the hospital$$s liquidity position over last $5$ years? Plus, provide at least one recommendation for the hospital management.

Use $5-$year trend of a liquidity ratio to justify your opinion and recommendation.

For comparison with industry benchmarks, use the data on pages $162-163($Exhibit $24\mathrm{.}4)$ of the casebook as proxy.Balance Sheet

Period ending date $6/30/20236/30/20226/30/20216/30/20206/30/2019$

Assets

Current Assets $$114,347,859$ $$108,709,304$ $$78,734,507$ $$72,022,588$ $$58,334,554$

Fixed Assets $$215,856,884$ $$176,613,790$ $$154,416,052$ $$153,143,875$ $$128,481,185$

Other Assets $$35,510,912$ $$106,299,670$ $$31,763,708$ $$27,685,714$ $$46,953,436$

Total Assets $$365,715,655$ $$391,622,764$ $$264,914,267$ $$252,852,177$ $$233,769,175$

Liabilities and Fund Balances

Current Liabilities $$49,988,048$ $$50,757,172$ $$28,922,989$ $$28,449,032$ $$23,451,393$

Long$-$Term Liabilities $$118,178,210$ $$117,034,199$ $$69,935,804$ $$69,907,558$ $$70,400,079$

Total Liabilities $$168,166,258$ $$167,791,371$ $$98,858,793$ $$98,356,590$ $$93,851,472$

Total Fund Balances $($Net Assets$)$ $$197,549,397$ $$223,831,393$ $$166,055,474$ $$154,495,587$ $$139,917,703$

Total Liabilities & Fund Balances $$365,715,655$ $$391,622,764$ $$264,914,267$ $$252,852,177$ $$233,769,175$

Income Statement

Period ending date $6/30/20236/30/20226/30/20216/30/20206/30/2019$

Revenues

Inpatient Revenue $$327,831,876$ $$276,318,590$ $$224,194,627$ $$195,216,499$ $$173,660,826$

Outpatient Revenue $$214,148,132$ $$186,591,538$ $$134,122,574$ $$123,512,970$ $$113,224,142$

Total Patient Revenue $$541,980,008$ $$462,910,128$ $$358,317,201$ $$318,729,469$ $$286,884,968$

Contractual Allowance $($Discounts$)($$$244,007,983)($$$201,418,586)($$$154,619,606)($$$137,053,675)($$$119,559,944)$

Net Patient Revenues $$297,972,025$ $$261,491,542$ $$203,697,595$ $$181,675,794$ $$167,325,024$

Other Income $($Contributions$,$ Bequests, etc.$)$ $$647,970$ $$400,054$ $$336,827$ $$369,328$ $$476,323$

Income from Investments $$751,058$ $$1,345,211$ $$2,549,139$ $$2,346,792$ $$1,820,364$

Governmental Appropriations $$3,929,774$ $$4,419,377$ $$4,817,785$ $$4,769,628$ $$4,690,566$

Miscellaneous Non$-$Patient Revenue $$18,657,159$ $$16,690,393$ $$12,152,590$ $$11,606,186$ $$10,171,643$

Total Revenues $$321,957,986$ $$284,346,577$ $$223,553,936$ $$200,767,728$ $$184,483,920$