HSMB 306 – Assignment #3- Summer, 2020Refer to Sunset Hospital’s financial statements below for calculating the ratios in problems 1-6.

Sunset Hospital

Statement of Operations

For the Year Ended December 31, 2018

Sunset Hospital

Balance Sheet

As of December 31, 2018 (2017 omitted)

Revenues, Gains, Other Support

Assets

Current Assets

Cash and cash equivalents $

Net patient receivables

Total Current Assets

Properties and Equipment

Gross properties and equipment $ Less accumulated depreciation

Net Properties and Equipment 425,000

Total Assets $

Liabilities and Net Assets

Current Liabilities

Accounts Payable Salaries Payable

Total Current Liabilities

Notes Payable Unrestricted Net Assets

Total Liabilities and Net Assets $

Net patient service revenue

Other revenue

Total Revenue

Expenses

$

1,500,000

200,000

1,700,000

Nursing ServicesAdministrative ServicesDepreciation 100,000

50,000

350,000

400,000

900,000 475,000

825,000

200,000 50,000 250,000

200,000 375,000 825,000

1,200,000 200,000

Other Expenses

Total Expenses

Operating Income

Investment Income

Excess of revenues over expenses 200,000

Increase in Unrestricted Net Assets $

50,000

1,550,000 150,000 50,000

200,000

1

1. What is Sunset Hospital’s operating margin?
2. What is Sunset Hospital’s days in accounts receivable?
3. What is Sunset Hospital’s long-term debt to net assets ratio?
4. What is Sunset Hospital’s age of plant?
5. What is Sunset Hospital’s fixed asset turnover ratio?
6. What is Sunset Hospital’s days cash on hand?