DoOver Hospital Statement of Operations REVENUE Pt Services 13,031 Conttractual
ID: 2772823 • Letter: D
Question
DoOver Hospital
Statement of Operations
REVENUE
Pt Services
13,031
Conttractual adjustment
-4209
Charity care
-420
bad debt allowance
-600
Net Pt revenue
7,802
Premium Revenue
400
Other revenue
440
TOTAL
8,642
EXPENSES
Salaries
4,980
Supplies
3,080
Depreciation
461
Interest
113
Total op expenses
8,644
total op Income
-2
NON OP INCOME
Investments
95
CHANGE IN NET ASSETS
unrestricted net
3,285
Temp restricted assets
750
Permanent restricted assets
400
Total change
4,43
Using the financial statement of DoOver Hospital, calculate the following ratio’s for 2013;
1. Current Ratio 2. Operating margin Ratio
3. Total Asset turnover Ratio 4. Long Term Debt Ratio
DoOver Hospital
Statement of Operations
REVENUE
Pt Services
13,031
Conttractual adjustment
-4209
Charity care
-420
bad debt allowance
-600
Net Pt revenue
7,802
Premium Revenue
400
Other revenue
440
TOTAL
8,642
EXPENSES
Salaries
4,980
Supplies
3,080
Depreciation
461
Interest
113
Total op expenses
8,644
total op Income
-2
NON OP INCOME
Investments
95
CHANGE IN NET ASSETS
unrestricted net
3,285
Temp restricted assets
750
Permanent restricted assets
400
Total change
4,43
Explanation / Answer
1) Current Ratio= Current Assets/ Current Liabilities no information on liabilities is provided in question
2) Operating margin Ratio= Operaing profit/Total Revenue=-2/8,642=-.023%
3) Total Asset turnover Ratio= Total Revenue/Total Assets=8,642/4430=1.95, total assets shouuld be 3285+750+400=4430 there is mistake above
4) Long Term Debt Ratio= Long Term Debt/Total Assets, Long Term debt information is missing
The question seems to have missing information.
thanks
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