D4-Conducting a Comparative Financial Analysis

Metropolitan-Memorial-Hospital-Financial-Statements.docx

(Balance Sheet)

(in thousands)

2018 2017

Current Assets
Cash	$124	$280
Temporary Investments	45	30
Receivables, Net	$1,536	$1,340
Inventory	175	140
Prepaid Expenses	32	40
Total Current Assets

Long-term Investments	1,010	600
Plant and Equipment	6,980	6,580
Less accumulated depreciation	(1,730)	(1,660)
Plant and Equipment, net	5,250	4,920
Total Assets	$8,172	$7,350

Current Liabilities
Accounts Payable	$302	$370
Accrued Expense Payable	208	220
Deferred Revenues	77	60
Total Current Liabilities	587	650
Long-term liabilities	3,000	2,400
Total Liabilities	3,587	3,050

Net Assets
Unrestricted	3,285	3,000
Temporarily Restricted	700	700
Permanently Restricted	600	600
Total net assets	4,585	4,300
Total liabilities and net assets	$8,172	$7,350

Metropolitan Memorial Hospital Statement of Operations

(Income Statement)

2018 2017

Gross patient services revenue (non-GAAP*)	$9,490	$8,870
Less deductions from revenues (non-GAAP)	(890)	(780)
Net patient services revenues	8,600	8,090
Other operating revenues	633	519
Total operating revenues	9,233	8,609

Operating expenses
Salaries and wages	5,678	5,497
Supplies	850	823
Utilities	576	558
Insurance	46	44
Depreciation	173	168
Interest	146	142
Bad Debts	375	363
Other operating expenses	1,299	987
Total operating expenses	9,143	8,582

Operating Income	90	27
Nonoperating Income	195	154
Excess of revenues over expenses	$285	$181

Changes in net assets
Unrestricted	$285	$181
Temporarily restricted	-	-
Permanently restricted	-	-
Total changes in net assets	285	181

*GAAP = generally accepted accounting principles

Metropolitan Memorial Hospital

(Statement of Cash Flows)

Cash Flows from Operating Activities
Cash received from patient and third-party payers	$8,404
Cash received from other operating revenue sources	650
Cash received from nonoperating revenue sources	180
Cash payments to employees	(4,500)
Cash payments to suppliers of goods and services	(4203)
Net cash flow from operating activities		$ 531

Cash Flows from Investing Activities
Cash payments for the purchase of plant assets	(940)
Cash payments for purchase of long-term investments	(450)
Proceeds from sales of plant assets	54
Proceeds from sale of long-term investments	49
Net cash flow from investing activities		(1,287)

Cash Flows from Financing Activities
Proceeds from Issuance of 6% bonds payable	3,000
Principal payments on long-term debt	(400)
Cash payments to retire 7% bonds payable	(2,000)
Net cash flow from financing activities		600
Net increase / (decrease) in cash		$(156)