Refer to the financial statements for The Heart Hospital in Problem 17.7. Prepare a common size balance sheet (where each account is expressed as a percentage of total assets) and a common size income statement (where each amount is expresed as a percentage of total revenures). What do the common size balance sheet and income statement reveal about The Heart Hospital?

The Heart Hospital Balance Sheet September 30, 2015 (in 000s) ASSETS Current assets: Cash $14,202 Accounts receivable, net 5,918 Medical supplies inventory 1,211 Prepaid expenses and other current assets 1,429 Total current assets $22,760 Property, plant and equipment, net $33,769 Other assets 901 Total Assets $57,430 LIABILITIES AND EQUITY Current liabilities: Accounts payable $1,910 Accrued compensation and benefits 2,543 Other accrued liabilities 1,843 Current portion of long-term debt 2,064 Total current liabilities $8,360 Long-term debt 21,640 Total liabilities $30,000 Owner's equity $27,430 Total liabilities and owner's equity $57,430 The Heart Hospital Statement of Operations Year ended September 30, 2015 (in 000s) Patient service revenue net of dis/allow $66,962 Provision for bad debt (2,457) Net patient service revenue $64,505 Operating expenses Personnel expense $21,707 Medical supplies expense 15,047 Other operating expenses 9,721 Depreciation expense 2,625 Total operating expenses $49,100 Income from operations $15,405 Other income (expense) Interest expense ($1,322) Interest and other income, net 159 Total other income (expense), net ($1,163)

PLEASE USE THIS TEMPLATE:

	Heart Hospital
	Common Size Balance Sheet
	September 30, 201X
Current Assets
Cash
Accounts Receivable, net
Medical supplies inventory
Prepaid expesnes 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
Lont-term debt
Total liabilities
Owners' equity
Total Liabilities and owners' equity
	Heart Hospital
	Common Size Income Statement
	Year Ended September 30, 201X
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 (expesnes), net
Net Income