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
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
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