Wakeland Community Hospital Statement of Operations For The Years Ended December 31, 20X1 and 20X0 (In Thousands) Particulars Revenues

Horizontal, vertical, and ratio analyses. Exhibits 4.27a and 4.
27b show the statement of operations and

balance sheet for the 310-bed Wakeland Community Hospital for 20X0 and 20X1. Adjusted discharges for
20X0 and 20X1 are 25,000 and 26,000, respectively.
a. Perform a horizontal analysis on both statements.
b. Perform a vertical analysis on both statements relative to 20X0
c. Compute all the selected ratios listed in Exhibit 4.16a, and compare them with the industry benchmarks.
Using these financial performance measures, evaluate the financial state of Wakeland Community. The
debt principal payments each year are $5.5 million, whereas adjusted discharges, as mentioned, are
25,000 in 20X0 and 26,000 in 20X1.
EXHIBIT 4.27a STATEMENT OF OPERATIONS FOR WAKELAND COMMUNITY HOSPITAL
Answer A
Wakeland Community Hospital
Statement of Operations for the Years Ended December 31, 20X1 and 20X0 (in thousands)
Particulars
Revenues
Net patient service revenue
Other operating revenue
Total operating revenues
Operating expenses
Salaries and benefits
Supplies and other expenses
Depreciation
Interest
Total operating expenses
Income from operations
Nonoperating income
Investment income/contributions
Excess of revenue over expenses
Net Income
Exhibit 4.27b Balance Sheet for Wakeland Community Hospital
Particulars
Current assets
Cash and cash equivalents
Net patient A/R
Inventories
Other current assets
Total current assets
Plant, property, and equipment

Gross plant, property, and equipment
Less Accumulated depreciation)
Net property, plant, and equipment
Funded depreciation/board-designated funds
Cash and short-term investments
Total assets
Current liabilities
Account Payable
Salaries payable
Notes payable
Total current liabilities
Long-term liabilities
Bonds payable
Total long-term liabilities
Common Stock
Total liabilities and common stock
Answer B
Wakeland Community Hospital
Statement of Operations for the Years Ended December 31, 20X1 and 20X0 (in thousands)
Particulars
Revenues
Net patient service revenue
Other operating revenue
Total operating revenues
Operating expenses
Salaries and benefits
Supplies and other expenses
Depreciation
Interest
Total operating expenses
Income from operations
Nonoperating income
Investment income/contributions
Excess of revenue over expenses
Net Income
Exhibit 4.27b Balance Sheet for Wakeland Community Hospital
Particulars
Current assets
Cash and cash equivalents
Net patient A/R
Inventories
Other current assets
Total current assets
Plant, property, and equipment

Gross plant, property, and equipment
Less Accumulated depreciation)
Net property, plant, and equipment
Funded depreciation/board-designated funds
Cash and short-term investments
Total assets
Current liabilities
Account Payable
Salaries payable
Notes payable
Total current liabilities
Long-term liabilities
Bonds payable
Total long-term liabilities
Common Stock
Total liabilities and common stock
http://www.chegg.com/homework-help/questions-and-answers/exhibit-416a-key-financial-r
20x1 20x0 Increase/Decrease Increase/Decrease %
$ 225,000 $ 210,000 $ 15,000 7.14%

$ 6,400 $ 5,700 $ 700 12.28%
$ 231,400 $ 215,700 $ 15,700 7.28%
$ 124,173 $ 110,167 $ 14,006 12.71%

$ 85,000 $ 61,000 $ 24,000 39.34%
$ 12,000 $ 11,300 $ 700 6.19%
$ 4,500 $ 2,500 $ 2,000 80.00%
$ 225,673 $ 184,967 $ 40,706 22.01%
$ 5,757 $ 30,733 $ -24,976 -81.27%
$ 7,500 $ 8,500 $ -1,000 -11.76%

$ 13,227 $ 39,233 $ -26,006 -66.29%
$ 13,227 $ 39,233 $ -26,006 -66.29%
20x1 20x0
$ 40,500 $ 35,500 $ 5,000 14.08%

$ 39,500 $ 36,400 $ 3,100 8.52%
$ 3,800 $ 4,000 $ -200 -5.00% 901786
$ 6,500 $ 5,200 $ 1,300 25.00% 162321.5
$ 90,300 $ 81,100 $ 9,200 11.34% 1064107
90178.6
973928.9
$ 215,000 $ 175,500 $ 39,500 22.51% 811607.4
$ -65,000 $ -107,000 $ 42,000 -39.25%
$ 150,000 $ 68,500 $ 81,500 118.98%
$ 185,000 $ 110,000 $ 75,000 68.18%
$ 425,300 $ 259,600 $ 165,700 63.83%
$ 14,500 $ 8,500 $ 6,000 70.59%

$ 4,500 $ 3,500 $ 1,000 28.57%
$ 4,300 $ 4,500 $ -200 -4.44%
$ 23,300 $ 16,500 $ 6,800 41.21%
$ 60,000 $ 27,500 $ 32,500 118.18% 3.11%

$ 60,000 $ 27,500 $ 32,500 118.18%
$ 342,000 $ 215,600 $ 126,400 58.63%
$ 425,300 $ 259,600 $ 165,700 63.83%
$ 342,000 3.87%
$ 1.54
20x1 % 20x0 %
$ 225,000 97.23% $ 210,000 97.36% 5.416667

$ 6,400 2.77% $ 5,700 2.64%
$ 231,400 100.00% $ 215,700 100.00%
0.175439
$ 124,173 53.66% $ 110,167 51.07%

$ 85,000 36.73% $ 61,000 28.28% 0.804138
$ 12,000 5.19% $ 11,300 5.24%
$ 4,500 1.94% $ 2,500 1.16%
$ 225,673 97.53% $ 184,967 85.75%
$ 5,757 2.49% $ 30,733 14.25%
$ 7,500 3.24% $ 8,500 3.94%

$ 13,227 5.72% $ 39,233 18.19%
$ 13,227 5.72% $ 39,233 18.19%
20x1 20x0
$ 40,500 9.52% $ 35,500 13.67%

$ 39,500 9.29% $ 36,400 14.02%
$ 3,800 0.89% $ 4,000 1.54%
$ 6,500 1.53% $ 5,200 2.00%
$ 90,300 21.23% $ 81,100 31.24%
$ 215,000 50.55% $ 175,500 67.60%

$ -65,000 -15.28% $ -107,000 -41.22%
$ 150,000 35.27% $ 68,500 26.39%
$ 185,000 43.50% $ 110,000 42.37%

$ 425,300 100.00% $ 259,600 100.00%
$ 14,500 3.41% $ 8,500 3.27%

$ 4,500 1.06% $ 3,500 1.35%
$ 4,300 1.01% $ 4,500 1.73%
$ 23,300 5.48% $ 16,500 6.36%
$ 60,000 14.11% $ 27,500 10.59%

$ 60,000 14.11% $ 27,500 10.59%
$ 342,000 80.41% $ 215,600 83.05%
$ 425,300 100.00% $ 259,600 100.00%
s/exhibit-416a-key-financial-ratios-liquidity-ratios-formulas-current-ratio-current-assets-c-q8873929
Answer C
Current Ratio = Current Assets/Current Liabilities
Current Assets $ 90,300
Current Liabilities $ 23,300
3.88
Quick Ratio = (Cash add Net Receivables)/Current Liabilities

Cash and cash equivalents $ 40,500
Net patient A/R $ 39,500
Total $ 80,000
3.43
Acid test ratio = (Cash add Net Receivables)/Current Liabilities

Cash and cash equivalents $ 40,500
1.74
Days in accounts receivable= Net Patient Accounts Receivables / (Net Patient Revenues / 365)
Net patient A/R 39500
Net patient service revenue $ 225,000
64.08
Days cash on hand = [(Cash add Short term Investments/Operating Expenses less Depreciation and Amortization Ex
Days cash on hand = [($ 40,500 add $ 185,000/$ 225,673 less $ 12,000) / 365] = 385.20 days
Average payment period, days = Current Liabilities / [(Operating Expenses − Depreciation and Amortization Expenses) / 365]
Average payment period, days = $ 23,300/($ 225,673 less $ 12,000)/365 = 39.80 days
Operating revenues per adjusted discharge = Total Operating Revenues / Adjusted Discharges
Operating revenues per adjusted discharge = $ 231,400/26,000 = $ 8.90
Operating Expense per adjusted discharge = Total Operating Expenses / Adjusted Discharges
Operating Expense per adjusted discharge = $ 225,673/26,000 = $ 8.68
Salary and benefit expense as percentage of operating expense = Total Salary and Benefit Expense / Total Operating Expenses
Salary and benefit expense as percentage of operating expense = $ 124,173/$ 225,673 = 55.02 %
Operating Margin = Income from Operations/Total Operating Revenues * 100

Operating Margin = $ 5,757/$ 231,400 * 100 = 2.49 %
Non operating revenue ratio = Nonoperating Revenues and Other Income / Total Operating Revenues * 100
Non operating revenue ratio = $ 6,400/$ 231,400 *100 = 2.77 %
Return on total assets = Excess of Revenues over Expenses / Total Assets * 100
Return on total assets = $ 13,227/$ 425,300 * 100 = 3.11 %
Return on net assets = Excess of Revenues over Expenses / Net Assets

Return on net assets = $ 13,227/$ 342,000 * 100 = 3.87 5
Total asset turnover ratio = Total Operating Revenues / Total Assets

Total asset turnover ratio = $ 231,400/$ 425,300 = 0.54
Net fixed assets turnover ratio = Total Operating Revenues / Net Plant and Equipment
Net fixed assets turnover ratio = $ 231,400/$ 150,000 = 1.54
Age of plant ratio = Accumulated Depreciation/Depreciation expense

Age of plant ratio = $ 65,000/$ 12,000 = 5.42
Long term debt to net assets ratio = Long Term Debt/Net Assets
Long term debt to net assets ratio = $ 60,000/$ 342,000 = 0.17
Net assets to total assets ratio = Net Assets/Total Assets

Net assets to total assets ratio = $ 342,000/$ 425,300 = 0.80
Times interest earned ratio = (Excess of Revenues over Expenses + Interest Expense) / Interest Expense
Times interest earned ratio = ($ 13,227 add $ 4,500)/$ 4,500 = 3.94
Debt service coverage ratio = (Excess of Revenues over Expenses + Interest Expense + Depreciation and Amortization Exp
Debt service coverage ratio = ($ 13,227 add $ 4,500 add $ 12,000)/($ 4,500 add $ 12,000) = 1.80
epreciation and Amortization Expenses) / 365]
Amortization Expenses) / 365]

ense / Total Operating Expenses
evenues * 100
rest Expense
preciation and Amortization Expenses) / (Interest Expense + Principal Payments)

Wakeland Community Hospital Statement of Operations For The Years Ended December 31, 20X1 and 20X0 (In Thousands) Particulars Revenues

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Wakeland Community Hospital Statement of Operations For The Years Ended December 31, 20X1 and 20X0 (In Thousands) Particulars Revenues

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What financial analyses were performed on the hospital's statements?

What financial analyses were performed on the hospital's statements?

How did the hospital's revenues and expenses change from 20X0 to 20X1?

How did the hospital's revenues and expenses change from 20X0 to 20X1?

Horizontal, vertical, and ratio analyses. Exhibits 4.27a and 4.

27b show the statement of operations and

Plant, property, and equipment

Plant, property, and equipment

20x1 20x0 Increase/Decrease Increase/Decrease %

$ 225,000 $ 210,000 $ 15,000 7.14%

$ 124,173 $ 110,167 $ 14,006 12.71%

$ 7,500 $ 8,500 $ -1,000 -11.76%

$ 13,227 $ 39,233 $ -26,006 -66.29%

$ 40,500 $ 35,500 $ 5,000 14.08%

$ 14,500 $ 8,500 $ 6,000 70.59%

$ 60,000 $ 27,500 $ 32,500 118.18% 3.11%

$ 225,000 97.23% $ 210,000 97.36% 5.416667

$ 124,173 53.66% $ 110,167 51.07%

$ 7,500 3.24% $ 8,500 3.94%

$ 13,227 5.72% $ 39,233 18.19%

$ 40,500 9.52% $ 35,500 13.67%

$ 215,000 50.55% $ 175,500 67.60%

$ 185,000 43.50% $ 110,000 42.37%

$ 14,500 3.41% $ 8,500 3.27%

$ 60,000 14.11% $ 27,500 10.59%

Quick Ratio = (Cash add Net Receivables)/Current Liabilities

Acid test ratio = (Cash add Net Receivables)/Current Liabilities

Operating Margin = Income from Operations/Total Operating Revenues * 100

Return on net assets = Excess of Revenues over Expenses / Net Assets

Total asset turnover ratio = Total Operating Revenues / Total Assets

Age of plant ratio = Accumulated Depreciation/Depreciation expense

Net assets to total assets ratio = Net Assets/Total Assets

Amortization Expenses) / 365]

preciation and Amortization Expenses) / (Interest Expense + Principal Payments)

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