LP4.2 Financial Assignment- Sunshine County Hospital Problems.DOCX

LP4.2 Financial Assignment- Sunshine County Hospital Problems

This assignment will assess the competency 3. Analyze the basics of accounting and financial statement interpretation.

Directions: Please use a cover page including your name, date, instructor, and course.

* REVIEW the Adobe Connect Financial Video on Operating Budget. Copy Link and follow instructions, all citation must be APA format

http://online.adobeconnect.com/p7vmjyeuo2r/ and the Operating Budget Transcript prior to completing the Assignment.

Using the Statement of Operations and Balance Sheet of Sunshine County Hospital solve the problems listed below in a word document. Be sure to show your work.

Provide the answers to the following question by using the formulas provided.

1. What is Sunshine County Hospital’s operating margin?
Operating Income/Total Revenue
Operating Income = Excess of Total revenue – total expenses
Total revenue = Net Patient service revenue + Other Revenue

2. What is Sunshine County Hospital’s days in accounts receivable?
Net Patient Receivables/Average Daily Revenue
Net Patient Receivables = ?
Net Patient Revenues = ?
Average Daily Revenue = Net Patient Revenue/365

3. What is Sunshine County Hospital’s long-term debt to net assets ratio?
Notes Payable/Net Assets (Equity)
Notes Payable = Long Term Debt = ?
Net Assets = ?
LTD/Net Asset Ratio = ?
Long term debt to net assets % = ?

4. What is Sunshine County Hospital’s fixed asset turnover ratio?
Total Revenue/Net Plant & Equipment
Total Revenue = ?
Net Plant & Equipment = Gross Properties & Equipment = $900,000 less Accumulated Depreciation of $475,000
Net Plant & Equipment = ?
Fixed Asset Turnover Ratio: ?

5. What is Sunshine County Hospital’s days of cash on hand?
Unrestricted Cash & Investment/((Total Expenses-Depreciation)/365)
Unrestricted Cash & Investments = ?
Total Expenses = ?
Depreciation Expense = ?
Fixed Asset Turnover Ratio: ?

 
Powered by