IHOPEIPASS Hospital, Balance Sheet 2013 2012 ASSETS Current assets 124 280 Temp
ID: 2772553 • Letter: I
Question
IHOPEIPASS Hospital,
Balance Sheet
2013
2012
ASSETS
Current assets
124
280
Temp investments
45
30
Receivables
3536
3717
inventory
175
140
prepaid expenses
32
40
Total Current Assets
3912
4207
Non current assets
property,plant,equip
6980
6580
depreciation
-1730
-1660
net property, plant,equip
5250
4920
long term invest
609
990
other non current assets
113
109
Total noncurrent assets
9884
10226
LIABILITIES & NET ASSETS
Current liabilities
accounts payable
302
370
note payable
345
335
Accrued expense payable
871
408
third party adjustments
147
239
portions of long term debt
184
178
Total current laibilities
1849
1530
non current liabilities
3600
3500
Total Liabilit ies
5449
5030
NET ASSETS
unrestricted assets
3285
3896
temp restricted assets
750
700
permanently restricted assets
400
600
Total net Assets
4435
5196
Total Liabilities & Net Assets
9884
10226
Using the financial statement of IHOPEIPASS Hospital, calculate the following ratio’s for 2012;
1. Current Ratio 2. Operating margin Ratio 3. Return on net Assets Ratio
4. Total Asset turnover Ratio 5. Long Term Debt Capitalization Ratio
Explain what the outcome of each means for the hospital.
IHOPEIPASS Hospital,
Balance Sheet
2013
2012
ASSETS
Current assets
124
280
Temp investments
45
30
Receivables
3536
3717
inventory
175
140
prepaid expenses
32
40
Total Current Assets
3912
4207
Non current assets
property,plant,equip
6980
6580
depreciation
-1730
-1660
net property, plant,equip
5250
4920
long term invest
609
990
other non current assets
113
109
Total noncurrent assets
9884
10226
LIABILITIES & NET ASSETS
Current liabilities
accounts payable
302
370
note payable
345
335
Accrued expense payable
871
408
third party adjustments
147
239
portions of long term debt
184
178
Total current laibilities
1849
1530
non current liabilities
3600
3500
Total Liabilit ies
5449
5030
NET ASSETS
unrestricted assets
3285
3896
temp restricted assets
750
700
permanently restricted assets
400
600
Total net Assets
4435
5196
Total Liabilities & Net Assets
9884
10226
Explanation / Answer
1. Current Ratio = Current asset / Current LIABILITIES
2013 = 3912 / 1849 = 2.11
2012 = 4207 / 1530 = 2.74
2.Operating margin Ratio = Opereting income / Net sale
2012 = 2677 / 3717 = .72
/3. Return on net Assets Ratio =
RONA = Net Income / (Fixed Assets + Working Capital)
Working Capital = Current Assets - Current Liabilities
= 4207 - 1530 = 2677
RONA = 3717 /(10226 + 2677) = .28
4. Total Asset turnover Ratio = Net Sales / Average Total Assets
= 3717 / 2598 = 1.43
5. Long Term Debt Capitalization Ratio =
Long term debt / (Long term debt + Preferred Stock + Common Stock)
=178 / (178 + 3500)
=.048