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Find current ratio. Show work Find both operating and total margin. Show work. F

ID: 2343072 • Letter: F

Question

Find current ratio. Show work

Find both operating and total margin. Show work.

Find debt-to-equity ratio. Show work.


MedStar Health, Inc. Consolidated Balance Sheet:s As of December 31, 2017, June 30, 2017, and December 31, 2016 (Dollars in millions) December 31, 2017 June 30, 2017 December 31, 2016 Assets Current assets: Cash and cash equivalents Investments (Note 1) Assets whose use is limited or restricted $662.6 33.4 61.9 757.9 $674.7 76.8 61.9 813.4 $484.8 81.7 60.1 626.6 Receivables From patient services (less allowances for uncollectible accounts of $181.8 million in December 2017, $175.2 million in June 2017 and $198.4 million in December 2016) Other 638.4 96.2 734.6 67.9 57.2 1,617.6 618.7 84.5 703.2 67.2 44.5 1,628.3 668.9 89.1 758.0 62.1 53.8 1,500.5 Inventories Prepaids and other current assets Total current assets Investments (Note 1) Assets whose use is limited or restricted 1,196.1 960.2 2,156.3 1,062.6 933.2 1,995.8 988.0 504.9 1,492.9 Property and equipment, net Goodwill and other intangibles, net Interest in net assets of foundation Other assets 1,295.8 382.1 62.8 116.1 1,322.6 385.0 59.3 1,302.7 251.7 56.5 123.0 Total assets $5,630.7 $5,508.3 $4,727.3

Explanation / Answer

31-Dec-17

30-Jun-17

31-Dec-16

Total current assets

1617.6

1628.3

1500.5

Total current liability

1164.5

1217.6

1172.2

Current ratio (Total current assets / Total current liability)

1.3891

1.3373

1.2801

Earnings from operation

58.6

43.5

47

Net operating revenue

2778.2

2810.4

2704.2

Operating margin (Earning from operation / net operating revenue)

2.1093%

1.5478%

1.7380%

Excess of revenue over expense

174.2

86.8

113.3

Net operating revenue

2778.2

2810.4

2704.2

Net margin or total margin (excess of revenue over expense / net operating revenue)

6.2702%

3.0885%

4.1898%

Long term debt

1646

1637

1215.2

Total equity (means here net assets given)

1854.2

1670.3

1423.3

Debt to equity ratio (long term debt / total equity)

0.8877

0.9801

0.8538

31-Dec-17

30-Jun-17

31-Dec-16

Total current assets

1617.6

1628.3

1500.5

Total current liability

1164.5

1217.6

1172.2

Current ratio (Total current assets / Total current liability)

1.3891

1.3373

1.2801

Earnings from operation

58.6

43.5

47

Net operating revenue

2778.2

2810.4

2704.2

Operating margin (Earning from operation / net operating revenue)

2.1093%

1.5478%

1.7380%

Excess of revenue over expense

174.2

86.8

113.3

Net operating revenue

2778.2

2810.4

2704.2

Net margin or total margin (excess of revenue over expense / net operating revenue)

6.2702%

3.0885%

4.1898%

Long term debt

1646

1637

1215.2

Total equity (means here net assets given)

1854.2

1670.3

1423.3

Debt to equity ratio (long term debt / total equity)

0.8877

0.9801

0.8538

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