In: Accounting
Using the attached financial statements please calculate for 2017 and 2016:
Days in Accounts receivable, Days Cash on hand, equity financing percentage, cash flow to debt percentage, times interest earned, fixed asset turnover ratio, current asset turnover ratio, average age of facilities. Please show all work and calculations
Assets | 2017 | 2016 |
Current Assets | ||
Cash and Cash equivalents | $82,815 | $59,696 |
Assets limited as to use, current portion | 5,327 | 5,088 |
Accounts Receivable | ||
Patients, less allowance for doubtful accounts ($25,302 in 2017 & $23,014 in 2016) | 70,025 | 59,939 |
other | 28,990 | 24,995 |
supplies | 7,078 | 6,663 |
Total Current Assets | 194,235 | 156,381 |
Assets limited as to use | ||
For donor restricted purposes | 84,440 | 67,826 |
board designated for specific purposes | 382,835 | 378,413 |
held by trustees under bond agreement | 51,038 | 25,937 |
518,313 | 472,176 | |
less current portion | 5,327 | 5,088 |
512,986 | 467,088 | |
property and equipment, net | 563,349 | 458,829 |
Other Assets | 34,476 | 34,302 |
Total Assets | 1,305,046 | 1,116,600 |
Liabilities and net assets | ||
Current Liabilities | ||
Accounts payable | 32,572 | 24,631 |
Accrues expenses & other liabilities | 58,878 | 53,725 |
Due to third-party payers | 7,380 | 12,633 |
Current maturities of long-term debt | 4,692 | 5,908 |
Total Current Liabilities | 103,522 | 96,897 |
Long-term debt, less current maturities | 439,597 | 332,354 |
Contingent professional liabilities | 33,260 | 48,487 |
due to broker | 15,128 | 19,608 |
Other liabilities | 20,713 | 5,298 |
postretirement benefit obligation other than pensions | 8,207 | 7,694 |
Total Liabilities | 620,427 | 510,338 |
Net Assets | ||
Unrestricted | 600,179 | 538,436 |
temporarily restricted | 55,213 | 40,393 |
Permanently restricted | 29,227 | 27,433 |
total net assets | 684,619 | 606,262 |
Total liabilities & net assets | 1,305,046 | 1,116,600 |
2017 | 2016 | |
Unrestricted revenues & other support | ||
Net patient service revenue | 829,005 | 774,662 |
other operating revenue | 27,055 | 29,334 |
total operating revenue | 856,060 | 803,996 |
operating expenses | ||
salaries and wages | 371,449 | 329,668 |
employee benefits | 81,532 | 77,231 |
supplies & purchased services | 228,244 | 225,497 |
advertising | 3,072 | 2,376 |
staff enrichment | 10,767 | 8,591 |
occupancy cost | 14,346 | 13,442 |
depreciation | 44,392 | 41,627 |
interest | 10,974 | 6,145 |
provision for bed debts | 55,851 | 57,975 |
operating expenses | 820,627 | 762,552 |
excess of revenue over expenses | 35,433 | 41,444 |
nonoperating gains (losses) | ||
contributions, gifts and bequests | 3,189 | 1,318 |
net assets released from restrictions for research expenditures | 14,070 | 14,474 |
research, education and other nonoperating expenses | (22,980) | (24,773) |
change in interest rate swap value and put agreements | 1,578 | 9,397 |
investment income | 30,453 | 18,402 |
26,310 | 18,818 | |
excess of revenues and gains over expenses and losses | 61,743 | 60,262 |
Statement of changes in Net Assets
2017 2016 Unrestricted net assets excess of revenues and gains over expenses and losses $61,743 $60,262 net assets released from restrictions for capital expenditure 0.00 119 cumulative effect of change in accounting principle 0.00 (3,943) increase in unrestricted net assets 61,743 56,438 Temporarily restricted net assets contributions, gifts and bequests 20,435 15,512 investment income 8,455 3,972 net assets released from restrictions for research expenditures (14,070) (14,474) net assets released from restrictions for capital expenditures 0.00 (119) increase in temporarily restricted net assets 14,820 4,891 permanently restricted net assets contributions, gifts and bequests 1,794 3,218 increase in permanently restricted net assets 1,794 3,218 net assets at beginning of year 606,262 541,715 net assets at the end of year 684,619 606,2622017 | 2016 | |
Operating activities | ||
increase in net assets | 78,357 | 64,547 |
adjustments to reconcile increase in net assets to net cash provided by operating activities | ||
change in net unrealized gains and losses on investment securities | (26,358) | 11,432 |
cumulative effect of change in accounting principles | 0.00 | (3,943) |
depreciation | 44,392 | 41,627 |
gain on sale or disposal of assets, net | (6,119) | 0.00 |
provision for bad debts | 55,851 | 57,975 |
change in interest rate swap value and put agreements | (1,578) | (9,397) |
changes in operating assets & liabilities | ||
assets limited to use | (19,779) | (14,274) |
accounts receivable | (65,937) | (51,251) |
other assets | (7,071) | (43) |
supplies | (415) | 840 |
accounts payable | 7,941 | 10,613 |
accrued expenses and other liabilities | 20,568 | 8,430 |
due to third party payers | (5,253) | (4,877) |
contingent professional liabilities | (15,227) | 3,743 |
postretirement benefit obligation, other than pensions | 513 | 456 |
net cash provided by operating activities | 59,885 | 115,878 |
investing activities | ||
property and equipment acquired | (142,793) | (159,943) |
Cash used in investing activities | (142,793) | (159,943) |
Financing activities | ||
repayment of long term debt | (177,294) | (5,545) |
proceeds from borrowing | 283,321 | 57,614 |
net cash provided from financing activities | 106,027 | 52,069 |
Net increase in cash & cash equivalents | 23,119 | 8,004 |
cash equivalents at beginning of year | 59,696 | 51,692 |
cash equivalents at end of year | 82,815 | 59,696 |
** if anything in the above tables is unclear please be specific in responding as to what is unclear**
Metrics | Formula | 2017 Calculation | 2017 | 2016 Calculation | 2016 |
Days in Account Receivable | (Account Receivable/Net Patients Service Revenue)*Number of Days in a Year | (70025/829005)*365 | 31 | (59939/774662)*365 | 28 |
Days Cash on Hand | (Cash and Cash Equivalents+Assets limited to use, current portion)*365/(Operating Expense - Depreciation-Provision for bad debts) | (82815+5327)*365/(820627-44392-55851) | 45 | (59696+5088)*365/(762552-41627-57975) | 36 |
Equity Financing % | Total Net Assets/Total Assets | 684619/1305046 | 52.46% | 606262/1116600 | 54.30% |
Cash Flow to Debt % | Net Cash provided by operating activities/Total Liabilities | 59885/620427 | 9.65% | 115878/510338 | 22.71% |
Times Interest Earned | (Excess of revenue and gains over expenses and losses +Interest Expense)/Interest Expense | (61743+10974)/10974 | 6.63 | (60262+6145)/6145 | 10.81 |
Fixed Asset Turnover Ratio | Total Operating Revenue/(Property and Equipment, Net) | 856060/563349 | 1.52 | 803996/458829 | 1.75 |
Current Asset Turnover Ratio | Total Operating Revenue/Total Current Assets | 856060/194235 | 4.41 | 803996/156381 | 5.14 |
What do you mean avergae age of facilities, its not clear