My question refers to practice exercise 12-I Liquidity Ratios in Health Care Finance Basic Tools for Nonfinancial Managers 5th edition. I need help figuring the days cash on hand and days receivable using pages 533-534 in the book. There were some tips given by the instructor. Net Receivables = (patient accounts receivable + any other accounts receivable) or ($40,000 + 0)=Numerator

Net Credit Revenue = Net Patient Service Revenue (do not worry about percentage of credit revenue in this calculation) Net Credit Revenue = $180,000. Therefore, ($180,000/# of day in the period)= Denominator.

5-16 EXILES AND EXERCISES, SUPPLEMENTAL MATERIALS, AND SOLUTIONS calenlaan is obtained. Figure 12-strates the process. The figure takes the balance she To bemer understand how the information for the bumerator and the denominator och and the statement of revenue and expense that were discussed in the preceding chapter and das on hand and in das recente further broken out into a three-PP 16 illustrate the source of each figure in the four liquidity ration. The multiple computation in Two of the liquidity ratios are illustrated in this practice exercise. Refer to Doctors Smith and CHAPTER 12 Example 124 better illustrate sources of inforto Practice Exercise 12-1: Liquidity Ratios Brown's financial statements appearing in the preceding exercises for Chapter 11 Required 1. Set up a worksheet for the current ratio and the quick ratio. 2 Compute the natics for Doctors Senith and Brown Assignment Exercise 12-1: Liquidity Ratios Refer to the Metropolis Health System (MHS) case study appearing in Chapter 38. Required 1. Set up a worksheet for the liquidity ratios 2. Compme the four liquidity ratios using the MHS financial statements appearing in Chapter 3 Example 12B To better understand how the information for the numerator and the denominator of each calculation is obtained, Figure 12-2 illustrates the process. This figure takes the balance sheer and the statement of revenue and expense that were discussed in the preceding chapter and illustrates the source of each figure in the two sob ency ratios. Any multiple computations are further broken out to better explain sources of information Practice Exercise 12-II: Solvency Ratios Refer to Doctors Smith and Brown's financial statements appearing in the preceding exercises for Chapter 11 Ramire SH EXAMPLES AND EXERCISES, SUPPLEMENTAL MATERIALS, AND SOLUTIONS Dato Smith and Brown Balance Sheet March 31.2 40.000 5.000 70,000 920,000 10,000 1.000.000 Cment et 125.000 Cash and cal equulents Patient counts receivable Inventories-pplies and drugs Total Current Assets Property. Plant and Equipment 500.000 Buildings and improvements 800,000 Equipment 1.300.000 To Less Accumulate Depreciation (180,000) $20,000 Net Depreciable Assets Land 100,000 Property. Plant, and Equipment, Net Other Awets Total Assets Liabilities and Capital Current Liabilities Current maturities of long-term 10,000 debt Accounts payable and accrued 20,000 expenses Total Current Liabilities Long-Term Debt 180,000 Less Current Portion of Long-Term Debt (10.000) Net Long Term Debt Total Liabilities Capital Total Liabilities and Capital Doctors Smith and Brown Statement of Changes in Capital for the Three Months Ended March 31,2 Beginning Balance $720,000 Net Income 80,000 Ending Balance $800,000 30.000 170.000 200,000 800,000 1,000,000 Chapter 11 Doctors Smith and Brown: Statement of Net Income for the Three Months Ended March 31,2_ 180,000 Net patient service revenue Other revenue lal Operating Revenue 180,000 ispenses Nursing/PA salaries Clerical salaries Payroll taxes/employee benefits Medical supplies and drugs Professional fees Dues and publications Janitorial service Office supplies Repairs and maintenance Utilities and telephone Depreciation Interest Other 16,650 10.150 4.800 15,000 3,000 2,400 1.200 1,500 1.200 6,000 30,000 3.100 5.000 100,000 80,000 Tial Expenses come from Operations Sonoperating Gains (Losses) Interest Income konoperating Gains, Net Set Income -0- 80,000 5-16 EXILES AND EXERCISES, SUPPLEMENTAL MATERIALS, AND SOLUTIONS calenlaan is obtained. Figure 12-strates the process. The figure takes the balance she To bemer understand how the information for the bumerator and the denominator och and the statement of revenue and expense that were discussed in the preceding chapter and das on hand and in das recente further broken out into a three-PP 16 illustrate the source of each figure in the four liquidity ration. The multiple computation in Two of the liquidity ratios are illustrated in this practice exercise. Refer to Doctors Smith and CHAPTER 12 Example 124 better illustrate sources of inforto Practice Exercise 12-1: Liquidity Ratios Brown's financial statements appearing in the preceding exercises for Chapter 11 Required 1. Set up a worksheet for the current ratio and the quick ratio. 2 Compute the natics for Doctors Senith and Brown Assignment Exercise 12-1: Liquidity Ratios Refer to the Metropolis Health System (MHS) case study appearing in Chapter 38. Required 1. Set up a worksheet for the liquidity ratios 2. Compme the four liquidity ratios using the MHS financial statements appearing in Chapter 3 Example 12B To better understand how the information for the numerator and the denominator of each calculation is obtained, Figure 12-2 illustrates the process. This figure takes the balance sheer and the statement of revenue and expense that were discussed in the preceding chapter and illustrates the source of each figure in the two sob ency ratios. Any multiple computations are further broken out to better explain sources of information Practice Exercise 12-II: Solvency Ratios Refer to Doctors Smith and Brown's financial statements appearing in the preceding exercises for Chapter 11 Ramire SH EXAMPLES AND EXERCISES, SUPPLEMENTAL MATERIALS, AND SOLUTIONS Dato Smith and Brown Balance Sheet March 31.2 40.000 5.000 70,000 920,000 10,000 1.000.000 Cment et 125.000 Cash and cal equulents Patient counts receivable Inventories-pplies and drugs Total Current Assets Property. Plant and Equipment 500.000 Buildings and improvements 800,000 Equipment 1.300.000 To Less Accumulate Depreciation (180,000) $20,000 Net Depreciable Assets Land 100,000 Property. Plant, and Equipment, Net Other Awets Total Assets Liabilities and Capital Current Liabilities Current maturities of long-term 10,000 debt Accounts payable and accrued 20,000 expenses Total Current Liabilities Long-Term Debt 180,000 Less Current Portion of Long-Term Debt (10.000) Net Long Term Debt Total Liabilities Capital Total Liabilities and Capital Doctors Smith and Brown Statement of Changes in Capital for the Three Months Ended March 31,2 Beginning Balance $720,000 Net Income 80,000 Ending Balance $800,000 30.000 170.000 200,000 800,000 1,000,000 Chapter 11 Doctors Smith and Brown: Statement of Net Income for the Three Months Ended March 31,2_ 180,000 Net patient service revenue Other revenue lal Operating Revenue 180,000 ispenses Nursing/PA salaries Clerical salaries Payroll taxes/employee benefits Medical supplies and drugs Professional fees Dues and publications Janitorial service Office supplies Repairs and maintenance Utilities and telephone Depreciation Interest Other 16,650 10.150 4.800 15,000 3,000 2,400 1.200 1,500 1.200 6,000 30,000 3.100 5.000 100,000 80,000 Tial Expenses come from Operations Sonoperating Gains (Losses) Interest Income konoperating Gains, Net Set Income -0- 80,000