Primary Financial statements are prsented in exhibits 17.1, 17.2 and 17.3 (attached)

A. Calculate riversids financial ratios for 2010, assume that riverside had $1,000,000 in lease payments and 1,400,000 in debt principal repyments in 2010.

B. Interpret the ratios. Use both trend and comparative anaylyses. for the comparative analysis assume that the industry average data prsented in the book is valild for both 2010 and 2011.

from the Health care finance: an introduction to accounting and fianacial managment 5th edition by louis c. gapenski

Tllhcial Condition Analysis 609 Cash Flows from Operating Activities: Change in net assets (net income) Adjustments: Depreciation Increase in accounts receivable Increase in inventories Decrease in accounts payable Increase in accrued expenses EXHIBIT 17.1 Riverside Memorial Hospital: Statement of Cash Flows Year Ended December 31, 2011 (in thousands) $ 8,572 4,130 (1,102) (195) 438) 229 $ 11,196 Net cash flow from operations Cash Flows from Investing Activities: Investment in property and equipment Investment in short-term securities ($ 4,293) (2,000) $ 6,293) Net cash flow from investing Cash Flows from Financing Activities: Repayment of long-term debt Repayment of notes payable $ 2,473) (3,262) ($ 5.735) Net cash flow from financing Net increase (decrease) in cash and equivalents Beginning cash and equivalents Ending cash and equivalents S 832) $5,095 $4,263