Hcs 405

Patton-Fuller Ratio Computation

April Hernandez, Jennifer McKissick, Dawn Trotter, Michele Tucker, Ashley Ward,

HCS 405

Latrina Benjamin-Frazier

August 31, 2014

In this paper we will Compute the eight ratios in Chapter 11 for the Patton-Fuller Hospital based on its unaudited financial statements and critique its operating results and financial position. We will Read the Annual Report and the audited financial statements, and re-compute those same ratios using the audited financial statements, and consider the financial performance before the audit, and after the audit. We will be answering the question of what has changed and how significant is that change? As well as what plans should the hospital Board make for next year and the next five years?

Ratio 1 (unaudited) 2008 2009 (unaudited)

$130,026 $128,867

$8,380 $23,807

= 15.51 =5.41

Ratio 1 2008 (audited) 2009 (audited)

$130,026 $127,867

$8,380 $23,807

=15.51 =5.37

Ratio 2 (unaudited) 2008 2009 (unaudited)

$41,851+$37,666 $22,995+$59,787 $8,380 $23,807

=9.48 =3.47

Ratio 2 2008 (audited) 2009 (audited)

$41,851+$37,666 $22,995+$58,787 $8,380 $23,807

= 9.48 = 3.43

Ratio 3 (unaudited) 2008 2009 (unaudited)

437,424 - 24,955 = 412,469 462,293 – 36,036 = 426,257

412,469 ÷ 365 = 1,130, 426,257 ÷ 365 = 1,168

41,851 ÷ 1,130 = 37 22,995 ÷1,168 = 19.6

Ratio 3 (audited) 2008 2009 (audited)

437,424 - 24,955 = 412,469 463,293 - 36,036 = 427,257

412,469 ÷ 365 = 1,130 427,257 ÷ 365 = 1,171

41,851 ÷ 1,162 = 36.0 22,995 ÷ 1,171 = 19.6

Ratio 4 (unaudited) 2008 2009 (unaudited)

421,314 * 90% = 379,182.6 462,982 * 90% = 416,683.8

379,182.6 8 ÷ 365 = 1,038 416,683.8 ÷ 365= 1,141

37,666 ÷ 1,038= 36.2 59,787 ÷ 1,141= 52.3

Ratio...