Question

Use the information below to answer the following question.

ROCKY MOUNTAIN HOSPITAL

Balance Sheets

12/31/20XX

Assets

20XX

Current assets (net)*

$ 3,042,159

Fixed Assets

7,101,233

Other Assets

387,184

Total Assets

$ 10,530,576

Liabilities and Fund Balances

Current Liabilities

Accounts and notes payable

Staffing and payroll-related

Other short term payables

$ 514,603

1,043,720

8,765

Total Current Liabilities

$ 1,567,088

Long-Term Liabilities

Long-term debt

Note payable

$ 6,500,772

2,000,000

Total Long-Term Liabilities

$ 8,500,772

Total Liabilities

$10,067,760

Fund Balance

$ 462,816

Total Liabilities and Fund Balance

*Includes $1,042,159 in patient accounts receivable

$10,530,576

ROCKY MOUNTAIN HOSPITAL

Income Statement

1/1/20XX-12/31/20XX

Revenues from Operations

20XX

Patient Services

$ 4,897,250

Less Contractual Allowances

21,260

Net Patient Service: Revenue

$ 4,875,990

Net Other Revenues

581,282

Total Revenue from Operations

$ 5,457,272

Expenses from Operations

Salaries and Expenses

$ 1,227,850

Management Salaries and Expenses

594,243

Other Salaries and Expenses

305,986

Supplies and Books

914,361

Utilities

45,764

Depreciation

613,228

Interest and Other

226,781

Total Expenses from Operations

$ 3,928,213

Net Income from Operations

$ 1,529,059

1) Referring to the information given, compute the current ratio.
2) Referring to the information given, compute the operating margin ratio.
3) Referring to the information given, compute the days of revenue in patient accounts receivable
4) Referring to the information given, compute the return on assets.

Answer

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