Required 1, Use the tables provided to SHOW YOUR WORK for the liquidity, solvency, and profitability ratios 2 Compute the ratios using the Chapter 33 MHS financial statements. Liquidity Ratios Liquidity Ratios Numerator Ratio Denominator Itop number [bottom number] Current Quick Days Cash on Hand (DCOH) Days Receivables Solvency Ratios Ratio Solvency Ratios Numerator Denominator Ibottom number top number Debt Service Coverage (DSCR) Liabilities to Fund Balance Profitability Ratios Denominator Ratio Numerator Profitability Ratios Ibottom number ltop number Operating Margin (%) Return on Total Assets (%) Exhibit 33-1 Balance Sheet Metropolis Health System Balance Sheet March 31, 2 Assets Liabilities and Fund Balance Current Liabilities Current Assets $1,150,000 Cash and Cash Equivalents Current Maturities of Long-Term Debt Assets Whose Use Is Limited 825,000 $525,000 Patient Accounts Receivable 7,400,000 Accounts Payable and Accrued Expenses Bond Interest Payable (Net of $1,300,000 Allowance for Bad Debts) 4,900,000 300,000 Other Receivables 150,000 Reimbursement Settlement Payable 100,000 Inventories 900,000 5,825,000 Prepaid Expenses 200,000 Total Current Liabilities 6,000,000 Long-Term Debt Total Current Assets 10,625,000 Less Current Portion of Assets Whose Use Is Limited Long-Term Debt Net Long-Term Debt (525,000) Corporate Funded Depreciation 5,475,000 1,950,000 Total Liabilities 11,300,000 Held by Trustee Under Bond Indenture Agreement 1,425,000 Fund Balances General Fund 21,500,000 Total Assets Whose Use Is 3,375,000 Limited Total Fund Balances 21,500,000 Less Current Portion (825,000) Total Liabilities and Fund $32,800,000 Balances Net Assets Whose Use Is 2,550,000 Limited Property, Plant, and Equipment, Net 19,300,000 Other Assets 325,000 Total Assets $32,800,000 Exhibit 33-2 Statement of Revenue and Expense Metropolis Health System Statement of Revenue and Expense for the Year Ended March 31, 2_ Revenue $34,000,000 1,100,000 Net patient service revenue Other revenue $35,100,000 Total Operating Revenue Expenses Nursing services Other professional services General services $5,025,000 13,100,000 3,200,000 Support services Depreciation Amortization Interest Provision for doubtful accounts 8,300,000 1,900,000 50,000 325,000 1,500,000 Total Expenses 33,400,000 Income from Operations $1,700,000 Nonoperating Gains (Losses) Unrestricted gifts and memorials $20,000 Interest income 80,000 Nonoperating Gains, Net 100,000 $1,800,000 Revenue and Gains in Excess of Expenses and Losses Exhibit 33-3 Statement of Cash Flows Metropolis Health System Statement of Cash Flows for the Year Ended March 31, 2 Statement of Cash Flows Operating Activities Income from operations Adjustments to reconcile income from operations to net cash flows from operating activities Depreciation and amortization Changes in asset and liability accounts Patient accounts receivable $1,700,000 1,950,000 250,000 Other receivables (50,000) (50,000) (50,000) (400,000) (25,000) (75,000) Inventories Prepaid expenses and other assets Accounts payable and accrued expenses Reduction of bond interest payable Estimated third-party payer settlements Interest income received Unrestricted gifts and memorials received 80,000 20,000 $3,350,000 Net cash flow from operating activities Cash Flows from Capital and Related Financing Activities Repayment of long-term obligations (500,000) Cash Flows from Investing Activities Purchase of assets whose use is limited (100,000) (2,000,000) Equipment purchases and building improvements $750,000 Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents, Beginning of Year 400,000 Cash and Cash Equivalents, End of Year $1,150,000 Exhibit 33- Statement of Changes in Fund Balance Metropolis Health System Statement of Changes in Fund Balance for the Year Ended March 31, 2_ General Fund Balance April 1, 2 $19,700,000 Revenue and Gains in Excess of Expenses and Losses 1,800,000 General Fund Balance March 31, 2 $21,500,000 Exhibit 33-5 Schedule of Property, Plant, and Equipment Metropolis Health System Schedule of Property, Plant, and Equipment for the Year Ended March 31, 2. $14,700,000 Buildings and Improvements Land Improvements 1,100,000 Equipment 28,900,000 $4,700,000 Total Less Accumulated Depreciation (26,100,000) Net Depreciable Assets $18,600,000 Land 480,000 220,000 Construction in Progress $19,300,000 Net Property, Plant, and Equipment Exhibit 33-6 Schedule of Patient Revenue Metropolis Health System Schedule of Patient Revenue for the Year Ended March 31, 2 Patient Services Revenue Routine revenue $9,850,000 7,375,000 5,825,000 Laboratory Radiology and CT scanner OB-nursery Pharmacy Emergency service Medical and surgical supply and IV Operating rooms Anesthesiology Respiratory therapy Physical therapy EKG and EEG 450,000 3,175,000 2,200,000 5,050,000 5,250,000 1,600,000 900,000 1,475,000 1,050,000 Ambulance service 900,000 575,000 Oxygen Home health and hospice 1,675,000 375,000 775,000 Substance abuse Other Subtotal $48,500,000 Less allowances and charity care (14,500,000) $34,000,000 Net Patient Service Revenue Exhibit 33-7 Schedule of Operating Expenses Metropolis Health System Schedule of Operating Expenses for the Year Ended March 31, 2 Nursing Services Routine Medical/Surgical Operating Room Intensive Care Units General Services $3,880,000 $1,055,000 Dietary 300,000 Maintenance 1,000,000 395,000 Laundry Housekeeping Security 295,000 OB-Nursery Other 150,000 300,000 $5,025,000 470,000 50,000 330,000 $3,200,000 Total Medical Records Total Other Professional Services $2,375,000 Laboratory Radiology and CT Scanner Pharmacy Emergency Service Medical and Surgical Supply Operating Rooms and Anesthesia Support Services 1,700,000 1,375,000 $4,600,000 240,000 1,130,000 1,900,000 430,000 $8,300,000 General Insurance Payroll Taxes Employee Welfare 950,000 1,800,000 Other Total 1,525,000 525,000 Respiratory Therapy Physical Therapy 700,000 Depreciation Amortization 1,900,000 KG and EEG 185,000 50,000 Ambulance Service 80,000 325,000 Substance Abuse Interest Expense 460,000 Home Health and Hospice 1,295,000 130,000 $13,100,000 Other Provision for Doubtful 1,500,000 Total Accounts $33,400,000 Total Operating Expenses Required 1, Use the tables provided to SHOW YOUR WORK for the liquidity, solvency, and profitability ratios 2 Compute the ratios using the Chapter 33 MHS financial statements. Liquidity Ratios Liquidity Ratios Numerator Ratio Denominator Itop number [bottom number] Current Quick Days Cash on Hand (DCOH) Days Receivables Solvency Ratios Ratio Solvency Ratios Numerator Denominator Ibottom number top number Debt Service Coverage (DSCR) Liabilities to Fund Balance Profitability Ratios Denominator Ratio Numerator Profitability Ratios Ibottom number ltop number Operating Margin (%) Return on Total Assets (%) Exhibit 33-1 Balance Sheet Metropolis Health System Balance Sheet March 31, 2 Assets Liabilities and Fund Balance Current Liabilities Current Assets $1,150,000 Cash and Cash Equivalents Current Maturities of Long-Term Debt Assets Whose Use Is Limited 825,000 $525,000 Patient Accounts Receivable 7,400,000 Accounts Payable and Accrued Expenses Bond Interest Payable (Net of $1,300,000 Allowance for Bad Debts) 4,900,000 300,000 Other Receivables 150,000 Reimbursement Settlement Payable 100,000 Inventories 900,000 5,825,000 Prepaid Expenses 200,000 Total Current Liabilities 6,000,000 Long-Term Debt Total Current Assets 10,625,000 Less Current Portion of Assets Whose Use Is Limited Long-Term Debt Net Long-Term Debt (525,000) Corporate Funded Depreciation 5,475,000 1,950,000 Total Liabilities 11,300,000 Held by Trustee Under Bond Indenture Agreement 1,425,000 Fund Balances General Fund 21,500,000 Total Assets Whose Use Is 3,375,000 Limited Total Fund Balances 21,500,000 Less Current Portion (825,000) Total Liabilities and Fund $32,800,000 Balances Net Assets Whose Use Is 2,550,000 Limited Property, Plant, and Equipment, Net 19,300,000 Other Assets 325,000 Total Assets $32,800,000 Exhibit 33-2 Statement of Revenue and Expense Metropolis Health System Statement of Revenue and Expense for the Year Ended March 31, 2_ Revenue $34,000,000 1,100,000 Net patient service revenue Other revenue $35,100,000 Total Operating Revenue Expenses Nursing services Other professional services General services $5,025,000 13,100,000 3,200,000 Support services Depreciation Amortization Interest Provision for doubtful accounts 8,300,000 1,900,000 50,000 325,000 1,500,000 Total Expenses 33,400,000 Income from Operations $1,700,000 Nonoperating Gains (Losses) Unrestricted gifts and memorials $20,000 Interest income 80,000 Nonoperating Gains, Net 100,000 $1,800,000 Revenue and Gains in Excess of Expenses and Losses Exhibit 33-3 Statement of Cash Flows Metropolis Health System Statement of Cash Flows for the Year Ended March 31, 2 Statement of Cash Flows Operating Activities Income from operations Adjustments to reconcile income from operations to net cash flows from operating activities Depreciation and amortization Changes in asset and liability accounts Patient accounts receivable $1,700,000 1,950,000 250,000 Other receivables (50,000) (50,000) (50,000) (400,000) (25,000) (75,000) Inventories Prepaid expenses and other assets Accounts payable and accrued expenses Reduction of bond interest payable Estimated third-party payer settlements Interest income received Unrestricted gifts and memorials received 80,000 20,000 $3,350,000 Net cash flow from operating activities Cash Flows from Capital and Related Financing Activities Repayment of long-term obligations (500,000) Cash Flows from Investing Activities Purchase of assets whose use is limited (100,000) (2,000,000) Equipment purchases and building improvements $750,000 Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents, Beginning of Year 400,000 Cash and Cash Equivalents, End of Year $1,150,000 Exhibit 33- Statement of Changes in Fund Balance Metropolis Health System Statement of Changes in Fund Balance for the Year Ended March 31, 2_ General Fund Balance April 1, 2 $19,700,000 Revenue and Gains in Excess of Expenses and Losses 1,800,000 General Fund Balance March 31, 2 $21,500,000 Exhibit 33-5 Schedule of Property, Plant, and Equipment Metropolis Health System Schedule of Property, Plant, and Equipment for the Year Ended March 31, 2. $14,700,000 Buildings and Improvements Land Improvements 1,100,000 Equipment 28,900,000 $4,700,000 Total Less Accumulated Depreciation (26,100,000) Net Depreciable Assets $18,600,000 Land 480,000 220,000 Construction in Progress $19,300,000 Net Property, Plant, and Equipment Exhibit 33-6 Schedule of Patient Revenue Metropolis Health System Schedule of Patient Revenue for the Year Ended March 31, 2 Patient Services Revenue Routine revenue $9,850,000 7,375,000 5,825,000 Laboratory Radiology and CT scanner OB-nursery Pharmacy Emergency service Medical and surgical supply and IV Operating rooms Anesthesiology Respiratory therapy Physical therapy EKG and EEG 450,000 3,175,000 2,200,000 5,050,000 5,250,000 1,600,000 900,000 1,475,000 1,050,000 Ambulance service 900,000 575,000 Oxygen Home health and hospice 1,675,000 375,000 775,000 Substance abuse Other Subtotal $48,500,000 Less allowances and charity care (14,500,000) $34,000,000 Net Patient Service Revenue Exhibit 33-7 Schedule of Operating Expenses Metropolis Health System Schedule of Operating Expenses for the Year Ended March 31, 2 Nursing Services Routine Medical/Surgical Operating Room Intensive Care Units General Services $3,880,000 $1,055,000 Dietary 300,000 Maintenance 1,000,000 395,000 Laundry Housekeeping Security 295,000 OB-Nursery Other 150,000 300,000 $5,025,000 470,000 50,000 330,000 $3,200,000 Total Medical Records Total Other Professional Services $2,375,000 Laboratory Radiology and CT Scanner Pharmacy Emergency Service Medical and Surgical Supply Operating Rooms and Anesthesia Support Services 1,700,000 1,375,000 $4,600,000 240,000 1,130,000 1,900,000 430,000 $8,300,000 General Insurance Payroll Taxes Employee Welfare 950,000 1,800,000 Other Total 1,525,000 525,000 Respiratory Therapy Physical Therapy 700,000 Depreciation Amortization 1,900,000 KG and EEG 185,000 50,000 Ambulance Service 80,000 325,000 Substance Abuse Interest Expense 460,000 Home Health and Hospice 1,295,000 130,000 $13,100,000 Other Provision for Doubtful 1,500,000 Total Accounts $33,400,000 Total Operating Expenses