What ratios tell us about the physician group practice

Assignment Help Finance Basics
Reference no: EM131420272

Assingment: Ratio Analysis Form

Review the following example on how to perform the inventory turnover calculation, which shows you how to complete the table.

· Two different methods can determine the inventory turnover ratio.

o Cost of goods sold-operating revenue of a hospital-divided by ending inventory
o Total revenues plus net nonoperating gains divided by ending inventory

This example uses the first method to perform the calculation.

Because a hospital provides a service, we would find the number that reflects services provided. Total operating revenue reflects money that is earned for providing services. Locate the Statement of Net Income on the student website. Find the total operating revenue. This is $180,000. Then, locate the ending inventory number. To find the ending Inventory, use the Balance Sheet on the student website. The ending inventory number is 5000.

Cost of goods sold-operating revenue: 180,000 divided by ending inventory of 5000; 180,000/5000 = 36

· Place this information in the table. You will do the same with the rest of the ratios. Take the result of your calculations and place in the grid, as in the example.

· In addition, you are responsible for stating whether the ratios are solvency, leverage, or profitability ratios. Enter your answers in the appropriate column. Then, explain what these ratios tell us about the physician group practice.

Note.You will use the financial statements of Drs. Smith & Brown to perform the calculations on the next page. To calculate the debt service coverage ratio, you need the maximum annual debt service, which is $22,200.

The following table shows the median financial ratios for acute care hospitals. You can use this table to gauge the financial viability of the physician group practice.

Reference no: EM131420272

Money mistake

Read this Forbes article on "attach file" and Now consider a "money mistake" you have made. Describe how the heuristics, biases and other behavioral principles learned in cl

What are the respective efficiencies in each case

Explain why in cases of loads sensitive to frequency variation it is not recommended to connect an IG in parallel with a synchronous generator of comparable rated output pow

Why would a lender want to assign a mortgage loan

What does "assignment" mean and why would a lender want to assign a mortgage loan?- What is meant by a "purchase-money" mortgage loan? When could a loan not be a purchasemoney

Determine the goal of negotiating

Determine the goal of negotiating? Discuss and explain why is planning critical to the negotiation processand when would an organization negotiate for an item or product inste

Determine the percentage change in the value

Determine the percentage change in the value of the following currencies relative to the U.S. dollar between November 15, 2001 and February 20, 2004.  a. Rupee b. Pound c. Yen

The adjusted balance method to find interest amount

Bernie and Pam Britten are a young married couple starting careers and establishing a household. They will each make about $50,000 next year and will have accumulated about $4

What is the initial requirement

In the previous problem, suppose you sell the stock at a price of $42. what is your return? what would your return have been had you purchased the stock without margin? what

What is the expected waiting time to first birth

Assume that the probability of conception in any given month among sexually active couples not practicing birth control is constant at 0.20 per month, independent of the num

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd