LP4.2 Financial Assignment: Sunshine County Hospital Problems

This assignment will assess the competency 3. Analyze the basics of accounting and financial statement interpretation.

Directions: Please use a cover page including your name, date, instructor, and course.

Using theStatement of Operations and Balance Sheetof Sunshine County Hospital solve the problems listed below in a word document. Be sure to show your work.

Provide the answers to the following question by using the formulas provided.

1. What is Sunshine County Hospital?s operating margin?

Operating Income/Total Revenue

Operating Income = Excess of Total revenue ? total expenses

Total revenue = Net Patient service revenue + Other Revenue

2. What is Sunshine County Hospital?s days in accounts receivable?

Net Patient Receivables/Average Daily Revenue

Net Patient Receivables = ?

Net Patient Revenues = ?

Average Daily Revenue = Net Patient Revenue/365

3. What is Sunshine County Hospital?s long-term debt to net assets ratio?

Notes Payable/Net Assets (Equity)

Notes Payable = Long Term Debt = ?

Net Assets = ?

LTD/Net Asset Ratio = ?

Long term debt to net assets % = ?

4. What is Sunshine County Hospital?s fixed asset turnover ratio?

Total Revenue/Net Plant & Equipment

Total Revenue = ?

Net Plant & Equipment = Gross Properties & Equipment = $900,000 less Accumulated Depreciation of $475,000

Net Plant & Equipment = ?

Fixed Asset Turnover Ratio: ?

5. What is Sunshine County Hospital?s days of cash on hand?

Unrestricted Cash & Investment/((Total Expenses-Depreciation)/365)

Unrestricted Cash & Investments = ?

Total Expenses = ?

Depreciation Expense = ?

Fixed Asset Turnover Ratio: ?

Sunshine County Hospital Statement of Operations For the Year Ended December 31, 2010 Revenues, Gains, Other Support Net patient service revenue Other revenue Total Revenue Expenses Nursing Services Administrative Services Depreciation Other Expenses Total Expenses 1,500,000 200,000 1,700,000 Operating Income Investment Income Excess of revenues over expenses Increase in Unrestricted Net Assets 150,000 50,000 200,000 200,000 1,200,000 200,000 100,000 50,000 1,550,000 Sunshine County Hospital Balance Sheet As of December 31, 2010 (2009 omitted) Assets Current Assets Cash and cash equivalents Net patient receivables Total Current Assets Properties and Equipment Gross properties and equipment Less accumulated depreciation Net Properties and Equipment Total Assets Liabilities and Net Assets Current Liabilities Accounts Payable Salaries Payable Total Current Liabilities Notes Payable Unrestricted Net Assets Total Liabilities & Net Assets 50,000 350,000 400,000 900,000 475,000 425,000 825,000 200,000 50,000 250,000 200,000 375,000 $825,000