Here is set of summary statistical reports and financial statements for a fictit
ID: 2620724 • Letter: H
Question
Here is set of summary statistical reports and financial statements for a fictitious hospital. Using this information please calculate key ratios at the bottom.
Beach Memorial Hospital
Selected Financial and Statistical Information
Fiscal Year 2015
Statistical Information
Licensed beds 90
Staffed beds 70
Inpatient Admissions 4500
Inpatient Discharges 4600
Inpatient Days of Care 15500
Newborn Deliveries 500
Newborn Days of Care 1100
Emergency Room Visits 30000
Outpatient Surgery Visits 5000
Outpatient Diagnostic and Therapeutic Visits 50000
Case Mix Index 1.2
Medicare Case Mix Index 1.4
Balance Sheet
Cash & cash equivalents 24000
Patient accounts receivable 50000
Inventory 7500
Prepaid expenses 1200
Total current assets 82700
Restricted assets 12000
Investments - Marketable securities 430000
Fixed assets, net 300500
Other assets 15000
Total assets 840200
Current portion of long-term debt 5000
Accounts payable 10000
Notes payable 4000
Due to third parties 2500
Total current liabilities 21500
Long-term debt, net of current portion 200000
Other long-term liabilities 20000
Total liabilities 241500
Total net assets 598700
Total liabilites and net assets 840200
Statement of Operations
Inpatient revenues 285000
Outpatient revenues 175000
Gross patient services revenues 460000
Less deductions from revenue -240000
Net patient services revenues 220000
Other Operating revenues 50000
Total operating revenues 270000
Operating expenses
Salaries 225000
Supplies 10500
Utilities & other 2500
Depreciation 5750
Interest 3500
Bad debts 4600
Other operating expenses 10000
Total operating expenses 261850
Operating income 8150
Nonoperating income 850
Excess of revenues over expenses 9000
Change in net assets 9000
From Statement of Cash Flows
Principal payment on long-term debt 5500
Calculate the following
Total asset turnover
Fixed asset turnover
Current asset turnover
Inventory turnover
Net asset financing
Long-term debt to capitalization
Debt service coverage
Cash flow to debt
Explanation / Answer
Total asset turnover
= Sales Revenue / Total Assets
= 270000 / 840200
= 0.32
Fixed asset turnover
= Sales Revenue / Fixed Assets
= 270000 / 300500
= 0.8985
Current asset turnover
= Sales Revenue / Current Assets
= 270000 / 82700
=3.26
Inventory turnover
= Sales Revenue / Inventory
= 270000 / 7500
= 36
Net asset financing
=Net Assets / Total Assets
=598700 / 840 200
= 0.71
Long-term debt to capitalization
= Long term debt / Total capital
= 220000 / 598700
= 0.36
Debt service coverage
= Net Operating Income / Total Debt Service
= 8150 / 9000 ..........=Interest 3500 + Principal 5500 = 9000
= 0.91
Cash flow to debt
= Cash Flow from Operations / Total Debt
= 9000 + 5750 (Depreciation ) / 241500
= 0.061