Using the financial statements for Bobcat H atios for 2013 and th Indicate whether the 2013 Opum medans for each ratio (e Ecthalt Hospital in Chapter 4 Chapter 14, calculate the d indicate whether they are better or worse than the 2012 2013 ratios are better or worse than the benchmarks uing te each ratio (see Exhibit 144

Average payment period ratio

Operating margin ratio

Excess margin ratio

Return on net assets ratio

Total asset turnover ratio

Age of plant ratio

Fixed asset turnover ratio

Current asset turnover ratio

Inventory ratio

Net asset financing ratio

Long term debt to capitalization ratio

Debt service coverage ratio

Cash flow to debt ratio

1. Organization and Nature of Operations Bobcat Hospital is a 120-bed, nonprofit hospital offering the following services: inpatient, outpatient, emergency, long-term care, rehab, and home care. 2. Community Benefit and Charity Care Changes in generally accepted accounting principles (GAAP) in 2010 require hospitals to report charity care at cost with the method of arriving at cost. Bobcat Hospital provides healthcare services through various programs that are designed to enhance the health of the community. Bobcat Hospital provides emergent and urgent care to persons who cannot afford health insurance because of inadequate financial resources. Bobcat Hospital's fina policy provides care to patients regardless of their ability to pay, and all uninsured patients are eligible for dis based on their income up to 400% of the federal poverty level. The amount of charity care provided is based on this policy and the cost of charity care is calculated based on the charges for such cost-to- but still considered a community benefit, is the loss to the Medicaid program. ncial assistance services multiplied by the hospital's charges ratio (o.66334). The cost of charity care provided in 2013 was $134,40o. Not included in this amount, 3. Bad Debt Changes in generally accepted accounting principles (GAAP) in 2011 require hospitals that recognize significant amounts of patient services revenue at time of service even though the hospital does not assess the patient's ability to pay shall present that portion of bad debt as a deduction from revenue. The amount of bad debt is based on this principle of revenue recognition and the amount recognized in 2013 was $600,00o based on charges 4. Net Patient Services Revenue provisions for contractual allowances ($4,209,000) in addition to provisions for charity care ($420,ooo) and bad dett ($600,000). Provisions for contractual allowances recognized discounts provided based on agreements with Medicare, Patient services revenue is reported at estimated net realizable amounts for services rendered. The amount is net of Medicaid, other government programs, and major insurance companies. 1. Organization and Nature of Operations Bobcat Hospital is a 120-bed, nonprofit hospital offering the following services: inpatient, outpatient, emergency, long-term care, rehab, and home care. 2. Community Benefit and Charity Care Changes in generally accepted accounting principles (GAAP) in 2010 require hospitals to report charity care at cost with the method of arriving at cost. Bobcat Hospital provides healthcare services through various programs that are designed to enhance the health of the community. Bobcat Hospital provides emergent and urgent care to persons who cannot afford health insurance because of inadequate financial resources. Bobcat Hospital's fina policy provides care to patients regardless of their ability to pay, and all uninsured patients are eligible for dis based on their income up to 400% of the federal poverty level. The amount of charity care provided is based on this policy and the cost of charity care is calculated based on the charges for such cost-to- but still considered a community benefit, is the loss to the Medicaid program. ncial assistance services multiplied by the hospital's charges ratio (o.66334). The cost of charity care provided in 2013 was $134,40o. Not included in this amount, 3. Bad Debt Changes in generally accepted accounting principles (GAAP) in 2011 require hospitals that recognize significant amounts of patient services revenue at time of service even though the hospital does not assess the patient's ability to pay shall present that portion of bad debt as a deduction from revenue. The amount of bad debt is based on this principle of revenue recognition and the amount recognized in 2013 was $600,00o based on charges 4. Net Patient Services Revenue provisions for contractual allowances ($4,209,000) in addition to provisions for charity care ($420,ooo) and bad dett ($600,000). Provisions for contractual allowances recognized discounts provided based on agreements with Medicare, Patient services revenue is reported at estimated net realizable amounts for services rendered. The amount is net of Medicaid, other government programs, and major insurance companies