Instructions: Using the Income Statement and Balance Sheet below, calculate each of the ratios below in the yellow cell. Use formulas to show your work. For each ratio, provide a brief ratio analysis, trend analysis and comparative analysis. Ratio Analysis: Briefly explain what the ratio means Trend Analysis Compare 2019 results with 2018 and explain if the ratios improved or declined and briefly why this could have occurred Comparative Analysis Compare HPMC 2019 with industry averages and explain how HPMC did compared to other comparable hospitals. INCOME STATEMENT - HIGH PLAINS MEDICAL CENTER RATIOS 2019 HPMC 2019 HPMC 2018 Industry Averages Patient service revenue $179,305 PROFITABILITY Less: Provision for bad debts 9,655 Total Margin 4.9% 4.4% Net patient service revenue $169,650 Premium revenue 7,250 Other revenue 3,214 Total operating revenue $180,114 Operating Margin 3.0% 1.6% Nursing services $85,620 Dietary services 8,373 General services 29,907 ROA (return on assets) 4.8% 3.7% Administrative services 23,674 Employee health and welfare 13,375 Malpractice insurance 1,792 Depreciation 10,433 ROE (return on equity) 6.4% 8.3% Interest expense 3,344 Total expenses $176,516 Operating income $3,598 Nonoperating income $3,725 LIQUIDITY RATIOS Net income $7,323 Current Ratio 2.0 1.9 BALANCE SHEET - HIGH PLAINS MEDICAL CENTER 2019 Cash and equivalents $6,011 Short-term investments 4,997 Days Cash on Hand 23 29.9 Net patient accts receivable 30,134 Inventories 8,361 Total current assets $49,503 Gross plant and equipment 195,047 Debt Ratio 32.7% 33.7% Accumulated depreciation 111,750 Net plant and equipment $83,297 Total Assets $132,800 Times Interest Earned 4.4 4.4 Accounts payable $10,015 Accrued expenses 5,986 Notes payable 5,250 Total current liabilities $21,251 ASSET MANAGEMENT RATIOS Long-term debt $32,956 Capital lease obligations 1,925 Fixed Asset Turnover 1.2 1.9 Total long-term liabilities $34,881 Net assets (equity) $76,668 Total liabilities & equity $132,800 Total Asset Turnover 0.9 0.8 Days in Patient AR 59.0 47.5 Average Age of Plant 9.9 11.5