Assignment 3 Summer
keanuventura101
SunsetHospital-5.pdf
1
HSMB 306 – Assignment #3- Summer, 2020 Refer to Sunset Hospital’s financial statements below for calculating the ratios in problems 1-6.
Sunset Hospital Statement of Operations
For the Year Ended December 31, 2018
Revenues, Gains, Other Support Net patient service revenue $ 1,500,000
Other revenue 200,000
Total Revenue 1,700,000
Expenses Nursing Services 1,200,000
Administrative Services 200,000
Depreciation 100,000
Other Expenses 50,000
Total Expenses 1,550,000
Operating Income 150,000
Investment Income 50,000
Excess of revenues over expenses
200,000
Increase in Unrestricted Net Assets $ 200,000
Sunset Hospital Balance Sheet
As of December 31, 2018 (2017 omitted)
Assets Current Assets
Cash and cash equivalents $ 50,000
Net patient receivables 350,000
Total Current Assets 400,000
Properties and Equipment
Gross properties and equipment $ 900,000
Less accumulated depreciation 475,000
Net Properties and Equipment
425,000
Total Assets $ 825,000
Liabilities and Net Assets Current Liabilities
Accounts Payable 200,000
Salaries Payable 50,000
Total Current Liabilities 250,000
Notes Payable 200,000
Unrestricted Net Assets 375,000
Total Liabilities and Net Assets $ 825,000
2
1. What is Sunset Hospital’s operating margin?
2. What is Sunset Hospital’s days in accounts receivable?
3. What is Sunset Hospital’s long-term debt to net assets ratio?
4. What is Sunset Hospital’s age of plant?
5. What is Sunset Hospital’s fixed asset turnover ratio?
6. What is Sunset Hospital’s days cash on hand?
