Ratio analysis. Exhibit 4.21 lists the financial ratios for 189bed Collingswood Community Hospital. Assess the revenue, expense, and profitability; liquidity; activity; and capital structure of Collingswood for 20X1. Explain why these financial measures changed between 20X0 and 20X1, and compare them to national industry benchmarks for Collingswoods bed size, using the data from Exhibit 4.16a. EXHIBIT 4.21 SELECTED FINANCIAL RATIOS FOR COLLINGSWOOD COMMUNITY HOSPITAL Ratio 20X1 20X0 Liquidity ratios Current ratio 2.00 1.98 Acid test ratio 0.43 0.34 Days in accounts receivable 48 55 Days' cash on hand 245 190 Average payment period (days) 75 60 Revenue, expense, and profitability ratios Operating revenue per adjusted discharge $11,500 $11,200 Operating expense per adjusted discharge $10,150 $10,320 Salary and benefit as a percentage of total operating expense 35% 45% Operating margin 0.05 0.02 Nonoperating revenue (0.02) 0.05 Return on net assets 0.03 0.07 Activity ratios Total asset turnover ratio 0.97 1.04 Fixed asset turnover ratio 1.92 1.98 Age of plant 13.00 11.86 Capital structure ratios Debt service coverage ratio 4.15 3.25 Longterm debt to net assets (equity) 0.25 0.35 Net assets to total assets 0.60 0.56