Question

In: Accounting

Required Perform common sizing for the assets of the two hospitals. Same Year for Both Hospitals...

Required Perform common sizing for the assets of the two hospitals. Same Year for Both Hospitals Hospital

Exhibit 14–1

HOSPITAL A HOSPITAL B
CURRENT ASSESTS $ 2,000,000 $ 8,000,000
Property, Plant, & Equipment 7,500,000 30,000,000
Other Assets 500,000 2,000,000
Total Assets $10,000,000 $40,000,000

Assignment Exercise 14–4.1: Forecast Capacity Levels Review the information in Exhibit 14–1. The exhibit assumes three chairs and one 40-hour RN, for a realistic capacity level of seven patients infused per day.

1. Required Prepare another Infusion Center Capacity Level Forecast as follows: Assume the same three infusion chairs, but add another nurse for either four or six hours per day.

2. How would this change the daily capacity level for number of patients infused per day?

Solutions

Expert Solution

14-1 -

Normal Common size
HOSPITAL A HOSPITAL B HOSPITAL A HOSPITAL B
CURRENT ASSESTS $20,00,000 $80,00,000 10.00% 10.00%
Property, Plant, & Equipment 75,00,000 3,00,00,000 37.50% 37.50%
Other Assets 5,00,000 20,00,000 2.50% 2.50%
Total Assets $1,00,00,000 $4,00,00,000 50.00% 50.00%
$2,00,00,000 $8,00,00,000 100.00% 100.00%

14-4.1  

1&2 -

If you have add another nurse for 4 Hours then you have to have another chair as 1 Nurse is sufficient for 3 chairs. The daily capacitylevel would probably amount to 3 patients in Chairs #1 and #2 and 2 patients in Chairs #3 and 4,for a capacity level total of 10 patients in an ideal day. Compared to 7 patients per day, in this there is a net gain of 3 patients. If you have 4 chairs and have the second nurse for six hours, the daily capacity level would probably amount to 3 patients in Chairs #1, #2 and #3 and 2 patients remaining in Chair #4. This capacity level total amounts to 11 patients in an ideal day, for a net gain of 4 patients over the 7 patients assumed in Exhibit 13-1

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