Question

In: Accounting

Using the attached financial statements please calculate for 2017 and 2016: Days in Accounts receivable, Days...

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

Balance Sheet
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
Statement of Operations
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 684,619 606,262
Statements of Cash Flows
2017 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**

Solutions

Expert Solution

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


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