Patton-Fuller Ratio Computation

Patton-Fuller Ratio Computation

Review the financial statements, located in the Patton Fuller Community Hospital Virtual Organization.

• Click on the Healthcare tab and access the Patton-Fuller Community Hospital.
• Click the Chief Financial Officer link under the Corporate Officers tab to access the financial statements.

Compute the eight ratios—as shown in Chapter 11—for Patton-Fuller Hospital based on its unaudited financial statements and critique its operating results and financial position. Ratio by ratio, do you agree or disagree with the CEO’s report to the Board?

• Read the Annual Report and the audited financial statements, and re-compute those same ratios using the audited financial statements.
• Consider the financial performance before the audit, and after the audit. What has changed and how significant is that change? What plans should the hospital Board make for next year and the next five years?

Additional Directions: Need by 5-19-15 

This is the link that will give you access to all of the statements. The download will access all of the statements audited and unaudited.

To access the link go to https://ecampus.phoenix.edu/secure/aapd/cist/vop/index.html. Click on the following above to have access to the link.

The highlighted section need to be answered as stated and the 2 bullets.

No specific word count

No references

Exhibit 11–1 Eight Basic Ratios Used in Health Care (Use this to do computation for unaudited and audited)

Liquidity Ratios

1. Current Ratio

Current Assets

Current Liabilities

2. Quick Ratio

Cash and Cash Equivalents + Net Receivables

Current Liabilities

3. Days Cash on Hand (DCOH)

Unrestricted Cash and Cash Equivalents

Cash Operation Expenses / No. of Days in Period (365)

4. Days Receivables

Net Receivables

Net Credit Revenues / No. of Days in Period (365)

Solvency Ratios

5. Debt Service Coverage Ratio (DSCR)

Change in Unrestricted Net Assets (net income) +

 Interest, Depreciation, Amortization

Maximum Annual Debt Service

6. Liabilities to Fund Balance

Total Liabilities

Unrestricted Fund Balances

Profitability Ratios

7. Operating Margin (%)

Operating Income (Loss)

Total Operating Revenues

8. Return on Total Assets (%)

EBIT (Earnings Before Interest and Taxes)

Total Assets