Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please fill in blanks, showing formulas and specific numbers. Thank you. The Heart Hospital Statement of Operations Year ended September 30, 2015 (in thousands) Patient

image text in transcribed

Please fill in blanks, showing formulas and specific numbers. Thank you.

image text in transcribed The Heart Hospital Statement of Operations Year ended September 30, 2015 (in thousands) Patient service revenue net of discounts and allowances Provision for bad debt Net patient service revenue Operating expenses: Personnel expense Medical supplies expense Other operating expenses Depreciation expense Total operating expenses Income from operations Other income (expenses): Interest expense Interest and other income, net Total other income (expenses), net Net Income $66,962 (2,457) $64,505 $21,707 15,047 9,721 2,625 $ 49,100 $15,405 $ (1,322) 159 $ (1,163) $14,242 a. Perform a DuPont analysis on The Heart Hospital. Total margin Total asset turnover Equity multiplier Return on equity (ROE) Industry Heart Averages Hospital 15% 1.5 1.67 37.6% b. Calculate and interpret the following ratios for The Heart Hospital: Return on assets (ROA) Current ratio Days cash on hand Average collection period Debt ratio Debt-to-equity ratio Times interest earned (TIE) ratio Fixed asset turnover ratio Industry Heart Averages Hospital 22.50% 2.0 85 days 20 days 40% 0.67 5.0 1.4 Interpretation: The Heart Hospital Balance Sheet September 30, 2015 (in thousands) Current assets: Cash $ Accounts receivable, net Medical supplies inventory Prepaid expenses and other current assets Total current assets $ Property, plant and equipment, net Other assets Total assets $ Current Liabilities: Accounts payable Accrued compensation and benefits Other accrued liabilities Current portion of long term debt Total current liabilities Long-term debt Total liabilities Owners' equity Total liabilities and owners' equity 14,202 5,918 1,211 1,429 22,760 33,769 901 57,430 $ 1,910 2,543 1,843 2,064 $ 8,360 21,640 $ 30,000 27,430 $ 57,430

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Focus On Personal Finance

Authors: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart

5th Edition

0077861744, 978-0077861742

More Books

Students also viewed these Finance questions