Question

5) Return on Total Assets Case Study #1 Solve and Discuss 3) Memorial Healthcare System has indirect costs of $1,050,000. Allocate the indirect costs to each of the following hospital department first based on square footage and then based on total FTES. 1) Given below is a list of account balances for Memorial Healthcare System as of April 30, 18 and 2017. Prepare a Balance Sheet and Statement of Operations as of April 30, 2018 in proper form. O 25 $ $ 20 in thousands Accounts Property, Plant, and Equipment Accounts Payable Other Assets Long Term Debt Accounts Receivable, Net Cash and Investments Other Non-Current Liabilities Accumulated Depreciation Patient Revenue Salaries and Wages Supplies Expense Other Operating Expenses Oher Operating Revenues Department Radiology Laboratory Operating Room Emergency Department Intensive Care Unit All Other Departments Totals 35 70 Fiscal Year 2018 Square Footage FTES 20,000 $ 15,000 $ 25,000 $ 50,000 $ 30,000 $ 100,000 $ 240,000 $ 40 Fiscal Years 2018 2017 1,551,174 $ 1,465,030 330,972 $ 315,870 527,399 $ 317,874 765,559 $ 602,664 241,175 $ 240,272 1,834,888 $ 1,746,513 289,928 $ 234,428 750,000 $ 734,000 1,853,614 $ 1,806,556 1,530,196 $ 1,446,314 90,012 $ 85,077 180,023 $ 170,155 83,977 $ 90,518 $ $ $ $ $ $ $ 150 340 $ 2) Once you have completed the Balance Sheet and Statement of Operations for Memorial Healthcare System, compute the following financial ratios as of April 30, 2018. 1) Operating Margin= Operating income/ revenue = 2) Days in Accounts Receivable 3) Debt Ratio 4) Days of Cash on Hand words DK C Focus 3

Answer 1

Memorable Health care system Ralance sheet as on April 30 Cooo) Assets 2018 2017 Current Assets Account Receivable 24,175 240,272 "cash and investment 11834888 1746.513. 2076063/1986,785 Non-current Assets property, plant and Equipment 1,551,174 1665,030 Jess: Accumulated Deprecation 250,000 734000 801,174 731,030 other Assets 527399/317,874 Total Assets [3,4046363,035,689 2018 2017 Liabilities current liabilities Account Payable 1330972315870 Man- current liabilities Long term debt other non-current liabilities Total Liabilities 765,559 602664 289928 234 428. 1386,459 1152962 statment of operation for the yearended April 30 2018 ! particular I 2018 I 2012 patient Revenue 1853,614 1806,556 Les operating Revenue 183972 9058 1937,591 1897074 less operating expenses. salary qwages. 1530196 1,446314 suplies Copenses 90012 85072 other operating expenses 180023 170 IST

@ financias nations are of April 30 2018 are calculed betow: u operating marrin - operating in come / Revenue I 2012 195528 V100 2018 37 3600 1937591 7:09 189702 XLNO 10.31% 2) Days in Account Receivable - Account Receivable & Member of Tutal sole Bays. 2018 2017 240272 241 175x765 1853614 = 47.49 days 1 48.55 days. 3) Debt Ratio a total цар liabilities, хоо Total Assets 2018 2012 1386459 3404636 3025 689 = 40.72% = 37.98 % 1152,962 xloo 204620Mool Days of cash an Hand cash on hand x 365 days operating expenses 2018 2017 1834,888 1800,231 = 37 20 days. -x365 1,746513 1701546 375 days

② Return on tutal Assets a - Net Ineome *100 - Total Assets 2018 2017 , 137,360 x100 195,528 x100 3,40 4636 3035,689 4.03% 6.44%

3 Departments Square Fotage FTES Callocation (8) Callocation) o) Radiology 11050, 600 x 20,000 10,50,000 x 25 240000 3zó = 87,500 1 =77206 Laboratory 10,50,000x15000=65625105000x20-2688 240000 340 =61765 operation Room 10,50,000x25000=109328 0.5000 35-] 240000 P 340 = 108088 Emergency Dep. 10,50,00 59000 50x70 1240,000 22187508 340 = 216,176 intensive care (10,50000 20000 = 1195000 405 unit 2,40000 = 131,250 340 = 1 2 3529 lothes Department 1950,00 D x 100.000 24000 =437500 110 50000 7463235 estsoo 340 x 150 -