RATIOS & ANALYSIS ASSIGNMENT
SUGYSMTB
RATIOSANDANALYSISFEEDBACK.docxRATIOS AND ANALYSIS FEEDBACK
Thank you for submitting your Ratios and Analysis project, Walter.
Please see my detailed feedback in the rubric. You did not include the provided spreadsheet that is located in the project resources. Once completed, please submit that for review and update your brief to include that information.
I look forward to working with you as you reach mastery on this project.
Best wishes,
Amanda
THIS PROJECT IS NOT YET MASTERED!!!!
The Excel spreadsheet you need to submit is provided in the project resources. Please complete that spreadsheet and submit that for review.
https://learn.snhu.edu/d2l/le/content/754412/viewContent/12851704/View
https://learn.snhu.edu/d2l/le/content/754412/viewContent/12851702/View
https://learn.snhu.edu/d2l/le/content/754412/viewContent/12851703/View
https://learn.snhu.edu/d2l/le/content/754412/viewContent/12851701/View
https://learn.snhu.edu/d2l/le/content/754412/viewContent/12851706/View
https://learn.snhu.edu/d2l/le/content/754412/viewContent/12851705/View
Financial Analysis
Workbook.xlsx
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 | |||||||
