Dr Nick
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Megatropolis Hospital
Statement of Operations
For the Year Ended December 31, 2010
Revenues, Gains, Other Support
Net patient service revenue                                                                        $            1,500,000
Other revenue                                                                                                           200,000
Total Revenue                                                                                                   1,700,000
Expenses
Nursing Services                                                                                                      1,200,000
Administrative Services                                                                                              200,000
Depreciation                                                                                                               100,000
Other Expenses                                                                                                           50,000
Total Expenses                                                                                                  1,550,000
Operating Income                                                                                                       150,000
Investment Income                                                                                                      50,000
Excess of revenues over expenses                                                                                200,000
Increase in Unrestricted Net Assets                                                             $               200,000
Megatropolis Hospital
Balance Sheet
As of December 31, 2010 (2009 omitted)
Assets
Current Assets
Cash and cash equivalents                                                                          $                 50,000
Net patient receivables                                                                                               350,000
TotalCurrent Assets                                                                                             400,000
Properties and Equipment
Gross properties and equipment                                                                  $               900,000
Less accumulated depreciation                                                                                   475,000
Net Properties and Equipment                                                                               425,000
Total Assets                                                                                         $               825,000
Liabilities and Net Assets
Current Liabilities
Accounts Payable                                                                                      $               200,000
Salaries Payable                                                                                                          50,000
Total Current Liabilities                                                                       $               250,000
Notes Payable                                                                                                             200,000
Unrestricted Net Assets                                                                                              375,000
Total Liabilities and Net Assets                                                             $               825,000
1.     What is Megatropolis Hospital’s operating margin?
2.     What is Megatropolis Hospital’s days in accounts receivable?
3.     What is Megatropolis Hospital’s long-term debt to net assets ratio?
4.     What is Megatropolis Hospital’s age of plant?
5.     What is Megatropolis Hospital’s fixed asset turnover ratio?
6.     What is Megatropolis Hospital’s days cash on hand?
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