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Date Submitted: 07/09/2012 08:41 PM
Patton-Fuller Ratio Computation
Compute the eight ratios—as shown in Chapter 11—for Patton-Fuller Hospital based on its unaudited financial statements and critique its operating results and financial position.
Ratio by ratio, do you agree or disagree with the CEO’s report to the Board?
Read the Annual Report and the audited financial statements, and re-compute those same ratios using the audited financial statements.
• Considerthe financial performance before the audit, and after the audit.
What has changed and how significant is that change?
What plans should the hospital Board make for next year and the next five years?
Current Ratio
Current Assets
Current Liabilities
Quick Ratio
Cash and Cash Equivalents + Net Receivables
Current Liabilities
2009
Current Ratio
(Current Assets)/(Current Liabilities)
128,867/23,807=5.41
2009
Quick Ratio
(Cash & Cash Equivalents+Net Recievables)/(Current Liabilities)
82,782/23,807=3.477
3. Days Cash on Hand (DCOH)
Unrestricted Cash and Cash Equivalents
Cash Operation Expenses ÷ No. of Days in Period (365)
4. Days Receivables
Net Receivables
Net Credit Revenues ÷ No. of Days in Period (365)
2009 2009
Unrestricted Cash and Cash Equivalents
Cash Operation Expenses ÷ No. of Days in Period(365) Net Receivables
Net Credit Revenues ÷ No. of Days in Period (365)
22995/426257/365=1167.83/22995=19.69
59787/459900/365=1260 59787/1260=47.45
Solvency Ratios
5) Debt Service Coverage Ratio (DSCR)
Change in Unrestricted Net Assets (Net Income)+ Interest, Depreciation, Amortization
Maximum Annual Debt Service
6) Liabilities to Fund Balance
Total Liabilities
Unrestricted Fund Balances
2009
Solvency Ratios
█(@Change in Unrestricted Net Assets (Net Income)+Interest,deprieciation,amortization)/█(Maximum Annual Debt Service@)
((209471)+3708+36036)/14609=2.76
2009
Solvency Ratios...