The goal of this assignment is to evaluate the financial strength of an organization using financial ratios.

• Locate the Longwood Community Hospital financial information at the end of Chapter 4 under Review Questions and Problems (Exhibits 4.19a and 4.19b).
• Conduct a ratio analysis (for each of the 2 years reflected on the financial statements) using
  • two liquidity ratios,
  • two activity ratios,
  • two profitability ratios, and
  • two capital structure ratios.

\fmay be it publisher's prior permission. Violators will be prosecuted. EXHIBIT 4.19a STATEMENT OF OPERATIONS FOR LONGWOOD COMMUNITY HOSPITAL Longwood Community Hospital Statement of Operations (in thousands) for the Years Ended December 31, 20X1 and 20X0 20X1 20X0 Revenues Net patient service revenue $92,000 $91,000 Other revenue 3,000 2,500 Total operating revenues 95,000 93,500 Expenses Salaries and benefits 42,000 48,000 Supplies & other expenses 34,000 34,000 Depreciation 14,000 13,000 Total operating expenses 90,000 95,000 Operating income 5,000 (1.500) Excess of revenues over expenses 5,000 (1,500) .com Increase (decrease) in net assets $5,000 / ($1,500) NO darnitallee@gmail.c DOPrinted by: darnitallee@gmail.com. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. EXHIBIT 4.19b BALANCE SHEET FOR LONGWOOD COMMUNITY HOSPITAL Longwood Community Hospital Balance Sheet (in thousands) for the Years Ended December 31, 20X1 and 20X0 20X1 20XO Current assets Cash and cash equivalents $9,500 $7,500 Net patient receivables 15,000 13,500 Prepaid expenses 3,400 3,300 Total current assets 27,900 24,300 Noncurrent assets Plant, property, and equipment Gross plant, property, and equipment 78,000 74,000 (less accumulated depreciation) (20,000) (13,000) Net plant, property, and equipment 58,000 61,000 Construction in progress 12,000 11,500 Total assets $97,900 $96,800 Current liabilities Accounts payable $450 $850 Salaries payable 8,200 9,400 Total current liabilities 8,650 10,250 .com Long-term liabilities Bonds payable 55,000 58,000 Total long-term liabilities 55,000 58,000 Net assets 34,250 28,550 Total liabilities and net assets $97,909 $ $96,800 DO darnitalleed