HCMG 750_Week 6
Account_tutorWeek 6:
Readings:
Power Points for Chapters 21-24
Read Lectures – found in Course Materials Week 6.
Activities:
Topics:
The topics are posted each week to ignite discussion with one another (and, of course, to earn topic and participation points).
Please post responses in the Topics under the appropriate thread. Please copy and paste the question you are addressing so that all readers can stay focused on what is being addressed.
DQ W6
None this week
Peer response
None this week
For weeks 1,2,5 & 7 I expect you to post a response to your peers. The post should be written in APA format, include three well-constructed paragraphs, and include at least 1 reference either peer-reviewed or our text.
Assignments:
Your paper must be submitted as a Microsoft Word .doc document.
Week Six FINAL Case: (due week 7 – Day 1) – include an introduction/title page/conclusion
All charts should be incorporated into your paper.
Determine the amount of net operating income that would result for a hospital whose payer mix and expected volume (100 cases) is as follows:
30 Medicare cases | pay $2,000 per case | |||
30 Blue Cross Blue Shield cases | pay $2,200 per case | |||
20 commercial cases | pay 100 percent of charges | |||
10 Medicaid cases | pay average cost | |||
8 self-pay cases | pay 100 percent of charges | |||
2 charity cases | pay nothing | |||
Average cost per case is expected to be $2,200, and the average charge per case is $2,500 | ||||
I should see the following: ( show work)
A total for gross patient revenue – read this question carefully
A total for deductions for gross patient revenue – read this question carefully
Net patient revenue
Total expenses
Excess of revenue over expenses
1. Calculate gross patient revenue, deductions from gross patient revenue, net patient revenue, total expenses, and excess of revenues over expenses above.
2. Define revenue
3. Define fee for service, discounted fee for service, charity services, and payment before service is delivered. ( all written assignments must be in APA format)
Time Value of Money (TVM)
Calculate the Future Value of $1 in each of these 3 projects
Calculate the Present Value of each of the Projects below:
Future value and present value concepts are extremely important to the role of financial management and impact cash flow. The response and discussion activities for this objective may require research on the topic of time value in finance.
Explain the role of time value in finance and evaluate the impact it has in financial management.
Define TVM
Income Statement Preparation:
Prepare an Income Statement, in proper format, for 2015 for Johnson Medical Supplies (JMS) from the following information:
· Salaries $70,000
· Insurance $700
· Utilities $3,500
· Gas/Auto $5,750
· Office Supplies $7,250
· Revenue $175,000
· Rent $12,000
· Maintenance $50,000
Calculate, define, and discuss the operating expenses, operating profit, and profit percentage.
Did JMS have a good year? Why/Why not?
Industry average?
Complete the ratios listed based on the following Income Statement and Balance Sheet. | ||||||||
ABC Company Income Statement | Last Year | |||||||
Quick Ratio |
| |||||||
Sales | $1,000,000 | $900,000 |
| |||||
Current Ratio |
| |||||||
Cost of Goods Sold | $750,000 | $650,000 |
| |||||
Gross Profit | $250,000 | $250,000 | Accounts Receivable Turnover |
| ||||
| ||||||||
Operating Expenses | Inventory Turnover |
| ||||||
Selling Expenses | $50,000 |
| ||||||
Administrative Expenses | $85,000 | Net Profit on Sales |
| |||||
Total Operating Expenses | $135,000 | $127,000 |
| |||||
Gross Profit Margin |
| |||||||
Operating Income | $115,000 | $123,000 |
| |||||
Interest Expense | $17,500 | $17,500 | Return on Assets |
| ||||
| ||||||||
Net Income before Taxes | $97,500 | $105,500 | Return on Equity |
| ||||
Income Tax Expense | $34,125 | $36,925 |
| |||||
Working Capital |
| |||||||
Net Income after Taxes | $63,375 | $68,575 |
| |||||
Debt to Equity |
| |||||||
| ||||||||
ABC Company Balance Sheet | Times Interest Earned |
| ||||||
Current Assets |
| |||||||
Cash | $5,500 | $4,950 | ||||||
Accounts Receivable | $21,000 | $18,900 |
| |||||
Inventory | $17,500 | $15,750 | ||||||
Total Current Assets | $44,000 | $39,600 | ||||||
Non-Current Assets | ||||||||
Machinery & Equipment | $100,000 | $90,000 | ||||||
Furniture & Fixtures | $15,000 | $13,500 | ||||||
Transportation Equipment | $25,000 | $22,500 | ||||||
Accumulated Depreciation | $17,500 | $15,750 | ||||||
Total Non-Current Assets | $122,500 | $110,250 | ||||||
Total Assets | $166,500 | $149,850 | ||||||
Current Liabilities | ||||||||
Accounts Payable | $25,000 | $22,500 | ||||||
Notes Payable | $15,500 | $13,950 | ||||||
Wages Payable | $1,200 | $1,080 | ||||||
Current Liabilities | $41,700 | $37,530 | ||||||
Non-Current Liabilities | ||||||||
Long-Term Notes | $27,000 | $24,300 | ||||||
Total Liabilities | $68,700 | $61,830 | ||||||
Stockholders' Equity | ||||||||
Retained Earnings | $65,000 | $58,500 | ||||||
Common Stock | $32,800 | $29,520 | ||||||
Total Equity | $97,800 | $88,020 | ||||||
Total Liabilities & Equity | $166,500 | $149,850 | ||||||
FINAL is due Week 7 day 1
PPTs are due Week 7 day 1 (Remember to record your presentations)
Week 6:
Readings:
Power Points for Chapters 21-24
Read Lectures – found in Course Materials Week 6.
Activities:
Topics:
The topics are posted each week to ignite discussion with one another (and, of course, to earn topic and participation points).
Please post responses in the Topics under the appropriate thread. Please copy and paste the question you are addressing so that all readers can stay focused on what is being addressed.
DQ W6
None this week
Peer response
None this week
For weeks 1,2,5 & 7 I expect you to post a response to your peers. The post should be written in APA format, include three well-constructed paragraphs, and include at least 1 reference either peer-reviewed or our text.
Assignments:
Your paper must be submitted as a Microsoft Word .doc document.
Week Six FINAL Case: (due week 7 – Day 1) – include an introduction/title page/conclusion
All charts should be incorporated into your paper.
Determine the amount of net operating income that would result for a hospital whose payer mix and expected volume (100 cases) is as follows:
30 Medicare cases | pay $2,000 per case | |||
30 Blue Cross Blue Shield cases | pay $2,200 per case | |||
20 commercial cases | pay 100 percent of charges | |||
10 Medicaid cases | pay average cost | |||
8 self-pay cases | pay 100 percent of charges | |||
2 charity cases | pay nothing | |||
Average cost per case is expected to be $2,200, and the average charge per case is $2,500 | ||||
I should see the following: ( show work)
A total for gross patient revenue – read this question carefully
A total for deductions for gross patient revenue – read this question carefully
Net patient revenue
Total expenses
Excess of revenue over expenses
1. Calculate gross patient revenue, deductions from gross patient revenue, net patient revenue, total expenses, and excess of revenues over expenses above.
2. Define revenue
3. Define fee for service, discounted fee for service, charity services, and payment before service is delivered. ( all written assignments must be in APA format)
Time Value of Money (TVM)
Calculate the Future Value of $1 in each of these 3 projects
Calculate the Present Value of each of the Projects below:
Future value and present value concepts are extremely important to the role of financial management and impact cash flow. The response and discussion activities for this objective may require research on the topic of time value in finance.
Explain the role of time value in finance and evaluate the impact it has in financial management.
Define TVM
Income Statement Preparation:
Prepare an Income Statement, in proper format, for 2015 for Johnson Medical Supplies (JMS) from the following information:
· Salaries $70,000
· Insurance $700
· Utilities $3,500
· Gas/Auto $5,750
· Office Supplies $7,250
· Revenue $175,000
· Rent $12,000
· Maintenance $50,000
Calculate, define, and discuss the operating expenses, operating profit, and profit percentage.
Did JMS have a good year? Why/Why not?
Industry average?
Complete the ratios listed based on the following Income Statement and Balance Sheet. | ||||||||
ABC Company Income Statement | Last Year | |||||||
Quick Ratio |
| |||||||
Sales | $1,000,000 | $900,000 |
| |||||
Current Ratio |
| |||||||
Cost of Goods Sold | $750,000 | $650,000 |
| |||||
Gross Profit | $250,000 | $250,000 | Accounts Receivable Turnover |
| ||||
| ||||||||
Operating Expenses | Inventory Turnover |
| ||||||
Selling Expenses | $50,000 |
| ||||||
Administrative Expenses | $85,000 | Net Profit on Sales |
| |||||
Total Operating Expenses | $135,000 | $127,000 |
| |||||
Gross Profit Margin |
| |||||||
Operating Income | $115,000 | $123,000 |
| |||||
Interest Expense | $17,500 | $17,500 | Return on Assets |
| ||||
| ||||||||
Net Income before Taxes | $97,500 | $105,500 | Return on Equity |
| ||||
Income Tax Expense | $34,125 | $36,925 |
| |||||
Working Capital |
| |||||||
Net Income after Taxes | $63,375 | $68,575 |
| |||||
Debt to Equity |
| |||||||
| ||||||||
ABC Company Balance Sheet | Times Interest Earned |
| ||||||
Current Assets |
| |||||||
Cash | $5,500 | $4,950 | ||||||
Accounts Receivable | $21,000 | $18,900 |
| |||||
Inventory | $17,500 | $15,750 | ||||||
Total Current Assets | $44,000 | $39,600 | ||||||
Non-Current Assets | ||||||||
Machinery & Equipment | $100,000 | $90,000 | ||||||
Furniture & Fixtures | $15,000 | $13,500 | ||||||
Transportation Equipment | $25,000 | $22,500 | ||||||
Accumulated Depreciation | $17,500 | $15,750 | ||||||
Total Non-Current Assets | $122,500 | $110,250 | ||||||
Total Assets | $166,500 | $149,850 | ||||||
Current Liabilities | ||||||||
Accounts Payable | $25,000 | $22,500 | ||||||
Notes Payable | $15,500 | $13,950 | ||||||
Wages Payable | $1,200 | $1,080 | ||||||
Current Liabilities | $41,700 | $37,530 | ||||||
Non-Current Liabilities | ||||||||
Long-Term Notes | $27,000 | $24,300 | ||||||
Total Liabilities | $68,700 | $61,830 | ||||||
Stockholders' Equity | ||||||||
Retained Earnings | $65,000 | $58,500 | ||||||
Common Stock | $32,800 | $29,520 | ||||||
Total Equity | $97,800 | $88,020 | ||||||
Total Liabilities & Equity | $166,500 | $149,850 | ||||||
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