P14-2 (Computation of financial analysis ratios for a hospital, using financial statements) Following are condensed balance sheets and statements of operations for Elias Hospital for the years ended December 31, 2013 and 2012 (amounts in thousands of dollars). Use the preceding information to do the following: a. Compute the following ratios for both 2013 and 2012 : 1. Current ratio 2. Number of days' cash on hand 3. Number of days' patient service revenue in receivables 4. Operating margin 5. Total margin 6. Long-term debt to capitalization ratio 7. Debt service coverage (Note: Assume that $1,750 of long-term debt was redeemed in 2013, and $1,850 was redeemed in 2012.) 8. Times interest earned b. Using these ratios and any other observations you make from reviewing the financial statements, discuss whether the hospital s financial position and results of operations improved or worsened in 2013 compared with 2012