Accounting Questions

1. Check the Excel file. From the ratios completed, state specifically where the numbers come from, i.e. the line item NAME, and the PAGE number.

2. Using the Ingenix Median 2009 data (see the applicable column in the pictures attached) indicate whether each ratio calculated is favorable or unfavorable as compared to the Ingenix Data (see the 2 jpg files)

3. Identify the type of audit opinion issued by KPMG on the financial statements for the year ending August 31, 2012.

4. Suppose Northwestern pays $2.5 million on August 31, 2012 for their malpractice insurance policy that covers the time period of September 1, 2012 thru August 31, 2013.

a. Identify any impact to specific accounts on the balance sheet

b. Identify any impact to specific accounts on the statements of operations

c. What is the impact to the current ratio?

5. Suppose on August 31, 2012, Northwestern receives $100,000 of IV solutions at the loading dock. The IV solutions are received by Northwesterns’s storeroom staff and stored appropriately in the warehouse. The invoice for paying the vendor arrives at Northwestern on September 5, 2012.

a. Identify any impact to specific accounts on the balance sheet

b. Identify any impact to specific accounts on the statements of operations

c. What is the impact to the current ratio?

6. What was the net cost reported by Northwestern for charity care in 2012?

7. In 2012, supplies accounted for what portion of total operating expenses? Insurance accounted for what portion of total operating expenses in 2012? Was that an increase or decrease from 2011?

8. In Fiscal Year 2012, did Northwestern’s Long-Term Debt obligation increase from 2011? Suppose Northwestern had taken out $5million in long-term debt to build a new surgical suite. Where in the footnotes would this transaction have been captured? Identify the footnote by number and explain the impact.

9. What was the net increase (or decrease) in Cash & Cash Equivalents in 2012? What amount of cash was provided (or used) by Operations? What activity type used the majority of Northwestern’s cash in 2012?