RATIOS & ANALYSIS ASSIGNMENT
Horizontal & Vertical Analyses
| Lueders Medical Clinic | |||||||
| Horizontal Analysis of Selected Accounts | |||||||
| Accounts | 2018 $ | 2017 $ | Change | Percent | Notes | ||
| Accounts receivable | 66,135.00 | 75,675.00 | (9,540.00) | -0.1261 | |||
| Supplies inventory | 19,340.00 | 30,100.00 | (10,760.00) | -0.3575 | |||
| Property and equipment | 60,321.00 | 37,672.00 | 22,649.00 | 0.6012 | |||
| Bad debts | 11,500.00 | 18,440.00 | (6,940.00) | -0.3764 | |||
| Total contractual allowances | 505,200.00 | 465,000.00 | 40,200.00 | 0.0865 | |||
| Net patient revenue | 338,800.00 | 310,000.00 | 28,800.00 | 0.0929 | |||
| Salaries and wages | 165,320.00 | 139,279.00 | 26,041.00 | 0.1870 | |||
| Long-term liabilities | 15,000.00 | 12,355.00 | 2,645.00 | 0.2141 | |||
| Vertical Analysis: Fill in the correct information for each of the base amounts below. | |||||||
| Lueders Medical Clinic | |||||||
| Vertical Analysis of Selected Accounts | |||||||
| Accounts | Year 2018 | Year 2017 | Industry | Notes | |||
| Amount $ | Percent | Amount $ | Percent | ||||
| Accounts receivable | 66,135.00 | ERROR:#DIV/0! | 75,675.00 | ERROR:#DIV/0! | 45% | ||
| Supplies inventory | 19,340.00 | ERROR:#DIV/0! | 30,100.00 | ERROR:#DIV/0! | 10% | ||
| Net patient revenue | 338,800.00 | ERROR:#DIV/0! | 310,000.00 | ERROR:#DIV/0! | 100% | ||
| Accounts payable | 65,450.00 | ERROR:#DIV/0! | 41,254.00 | ERROR:#DIV/0! | 26% | ||
| Salaries and wages | 165,320.00 | ERROR:#DIV/0! | 139,279.00 | ERROR:#DIV/0! | 11% | ||
| Depreciation and amortization | 12,500.00 | ERROR:#DIV/0! | 17,650.00 | ERROR:#DIV/0! | 80% | ||
| Long-term liabilities | 15,000.00 | ERROR:#DIV/0! | 12,355.00 | ERROR:#DIV/0! | 6% | ||
| Net income | 1,424.00 | ERROR:#DIV/0! | 513.00 | ERROR:#DIV/0! | 10% | ||
| Base Amount for Balance Sheet: | 2018 | 2017 | |||||
| Base Amount for Income Statement: | 2018 | 2017 | |||||
Ratio Analysis
| Ratio Analysis | |||||||
| Please show your work in the "Calculation" cells. | |||||||
| Place your final ratios, properly expressed with units, in the bold outlined cells. | |||||||
| Ratios | Calculation | 2018 | Calculation | 2017 | Industry Average | Notes | |
| Liquidity Ratios | Current Ratio | 1.29 | |||||
| Current Assets / Current Liabilities | |||||||
| Quick Ratio (Acid Test) | 0.68 | ||||||
| (Current Assets - Supplies Inventory) / Current Liabilities | |||||||
| Debt Ratios | Debt to Total Assets | 0.4 | |||||
| Total Debt / Total Assets | |||||||
| Times Interest Earned | 2.5 | ||||||
| (Net Income + Interest Charges) / Interest Charges | |||||||
| Asset Management Ratios | Inventory Turnover | 25 | |||||
| Net Patient Service Revenue / Supplies Inventory | |||||||
| Average Collection Period | 55.4 | ||||||
| Accounts Receivable / Net Patient Service Revenues Per Day | |||||||
| Fixed Assets Turnover | 5.2 | ||||||
| Net Patient Service Revenue / Fixed Assets | |||||||
| Total Assets Turnover | 3 | ||||||
| Net Patient Service Revenue / Total Assets | |||||||
| Profitability Ratios | Profit Margin on Revenue | 0.59 | |||||
| Net Income / Net Patient Service Revenue | |||||||
| Return on Total Assets | 4.8 | ||||||
| Net income / Total assets | |||||||
| Return on Equity | 0.0975 | ||||||
| Net income / Equity | |||||||