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Income Statement For X hospital corporation during the year 2018, 2019 Item 2018 2019 Net patient service revenues (Sales) Less: cost of nursing, administrative, depreciation

Income Statement

For X hospital corporation during the year 2018, 2019

Item

2018

2019

Net patient service revenues (Sales)

Less: cost of nursing, administrative, depreciation and general (COGS)

19,000

18,000

40,000

30,000

Operating income (EBIT)

Less: interest expenses (10%)

1,000

100

10,000

1000

Taxable income (EBT)

Less: Tax (5%)

900

45

9000

450

Net income

855

8550

Stock Price at the end of 2019 = 6.00 USD

Balance Sheet

For X hospital corporation during the year ended at 31.12.2019

Assets

USD

Liabilities an Equities

USD

Cash

6,000

Account payables

3,000

M. Securities

2,000

Notes Payables

3,000

Net patients receivables

1,000

T. current liabilities

6,000

Inventories

11,000

Long term Debts

60, 000

T. current Assets

20,000

T. Liabilities

66,000

Land and buildings

50,000

Common Stocks

(25,000 shares outstanding)

40,000

Machines and equipments

50,000

Retained earnings

14,000

T. Fixed Assets

1000,000

T. owners equity

54,000

T. Assets

120,000

T. Liabilities and equities

120,000

Note in 2019:

Total hospital discharges = 3200 patients

Gross patients revenue = 60000

Gross inpatient revenue = 40000

Formulas:

  • Horizontal analysis = (subsequent year previous year/previous year) *100
  • Vertical analysis = (line item of interest/base line item) * 100
  • Adjusted discharge = (total hospital discharges * gross patients revenue)/ gross inpatient revenue.
  • EPS = NI/# of C/S
  • Price per share / E.P.S
  • B.V/P. S = T.E / # of C/S out standing
  • NPM = NI/ Sales (total patients revenue)

Question:

  1. We need to discover vertical and horizontal comparison between 2018 and 2019 performance in related to income statement.?
  2. Find out all ratio analysis based on the statements discussed below:

Liquidity:

  1. How much current liabilities could be covered by current assets, or how much current assets can be handling the short term debt?
  2. How much cash as well as M. securities to pay off current liabilities.? Or how much cash on hand or readily available from M. securities to pay off all current liabilities.?
  3. How many days in need to collect all hospital patient receivables.?

Profitability:

  1. Could you measure the total operating revenues generated from the patient care line of business based on its adjusted inpatient discharge.?
  2. Could you measure the total operating expenses resulted from the patient care line of business based on its adjusted inpatient discharge.?
  3. Calculate the Operating margin (O.M) as it means the position related to profits earned from the hospitals main line of business.?
  4. Calculate the hospital ROE and ROA?
  5. Based on previous f and g findings, calculate the net profit margin (NPM).?

Activity:

  1. How many times Total Fixed assets turnover during 2019?
  1. How many times Total assets turnover during 2019?
  2. How many times inventories turnover during 2019?

Capital structure:

  1. Can you find the proportion of debt to net assets.?
  1. What is the hospital Net assets position based on its total assets.?
  2. How many times operating income can pay its interests expenses.?

Extra:

As we know shares market is important:

  • Calculate the earnings per share (EPS).? Where EPS = NI /# of common stocks )
  • Find the price/earnings (P/E).?, where P/E = price per share/EPS.
  • Market value/book value per share (MV/BVPS).?, where (B.V/P. S = T.E / # of C/S out standing.

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