{"id":5451,"date":"2025-07-12T09:06:43","date_gmt":"2025-07-12T09:06:43","guid":{"rendered":"https:\/\/skilledprofessors.com\/?p=5451"},"modified":"2025-07-12T09:06:43","modified_gmt":"2025-07-12T09:06:43","slug":"ratio-analysis-instructions","status":"publish","type":"post","link":"https:\/\/writezilas.com\/essays\/ratio-analysis-instructions\/","title":{"rendered":"Ratio Analysis Instructions"},"content":{"rendered":"\n
    \n
  1. Review the following table:<\/li>\n<\/ol>\n\n\n\n

    XYZ Hospital<\/strong><\/p>\n\n\n\n

    Balance Sheet<\/strong><\/p>\n\n\n\n

    December 31, 20xx<\/strong><\/p>\n\n\n\n

    <\/td>Description<\/strong><\/td>Amount<\/strong><\/td><\/tr>
    Current Assets<\/strong><\/td>Cash and investments (savings\/checking)<\/td>$80,000<\/td><\/tr>
    <\/td>Patient revenue (money owed to hospital)<\/td>$472,000<\/td><\/tr>
    <\/td>Inventory (on the shelf)<\/td>$16,400<\/td><\/tr>
    <\/td>Subtotal<\/strong><\/td>$568,400<\/td><\/tr>
    <\/td>Less<\/strong><\/td><\/td><\/tr>
    <\/td>Bad debt<\/td>($57,200)<\/td><\/tr>
    <\/td>Charitable allowance<\/td>($14,100)<\/td><\/tr>
    <\/td>Contractual allowance<\/td>($269,300)<\/td><\/tr>
    <\/td>Subtotal<\/strong><\/td>($340,600)<\/td><\/tr>
    <\/td>Total Current Assets<\/strong><\/td>$227,800<\/td><\/tr>
    Fixed Assets<\/strong><\/td>Land<\/td>$29,000<\/td><\/tr>
    <\/td>Buildings (plant)<\/td>$805,000<\/td><\/tr>
    <\/td>Equipment<\/td>$610,000<\/td><\/tr>
    <\/td>Construction in progress<\/td>$37,000<\/td><\/tr>
    <\/td>Total Fixed Assets<\/strong><\/td>$1,481,000<\/td><\/tr>
    <\/td>Less accumulated depreciation<\/td>($880,800)<\/td><\/tr>
    <\/td>Net Fixed Assets<\/strong><\/td>$600,200<\/td><\/tr>
    <\/td>Total Assets<\/strong><\/td>$828,000<\/td><\/tr>
    Current Liabilities<\/strong><\/td>Accounts payable salaries, supplies, pharmaceutical<\/td>$36,560<\/td><\/tr>
    <\/td>Accrued compensation and benefits<\/td>$10,900<\/td><\/tr>
    <\/td>Accrued liabilities (interest, physician contracts)<\/td>$10,870<\/td><\/tr>
    <\/td>Total Current Liabilities<\/strong><\/td>$58,330<\/td><\/tr>
    Debt<\/strong><\/td>Long-term debt<\/td>$38,000<\/td><\/tr>
    <\/td>Short-term debt<\/td>$2,100<\/td><\/tr>
    <\/td>Total Debt<\/strong><\/td>$40,100<\/td><\/tr>
    <\/td>Total Liabilities (Total Current Liabilities + Debt)<\/strong><\/td>$98,430<\/td><\/tr>
    <\/td>Net Worth (Assets \u2212 Liabilities)<\/strong><\/td>$729,570<\/td><\/tr>
    <\/td>Total Liabilities and Net Worth<\/strong><\/td>$828,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
      \n
    1. Complete the following based on information provided in the table:<\/strong><\/li>\n<\/ol>\n\n\n\n
        \n
      1. Calculate the current ratio, quick ratio, and debt ratio.<\/li>\n\n\n\n
      2. What information do each of these ratios provide?<\/li>\n\n\n\n
      3. For each of the three ratios, give one way each ratio could be positively impacted.<\/li>\n\n\n\n
      4. For each of the three ratios, give one way each ratio could be negatively impacted.<\/li>\n\n\n\n
      5. For each ratio you calculated above, does the value of the ratio indicate a good or poor financial situation for this organization?\u00a0 Explain your conclusion for each of the ratios.\u00a0<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

        XYZ Hospital Balance Sheet December 31, 20xx Description Amount Current Assets Cash and investments (savings\/checking) $80,000 Patient revenue (money owed to hospital) $472,000 Inventory (on the shelf) $16,400 Subtotal $568,400 Less Bad debt ($57,200) Charitable allowance ($14,100) Contractual allowance ($269,300) Subtotal ($340,600) Total Current Assets $227,800 Fixed Assets Land $29,000 Buildings (plant) $805,000 Equipment $610,000…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[16],"tags":[],"class_list":["post-5451","post","type-post","status-publish","format-standard","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/writezilas.com\/essays\/wp-json\/wp\/v2\/posts\/5451","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/writezilas.com\/essays\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/writezilas.com\/essays\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/writezilas.com\/essays\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/writezilas.com\/essays\/wp-json\/wp\/v2\/comments?post=5451"}],"version-history":[{"count":0,"href":"https:\/\/writezilas.com\/essays\/wp-json\/wp\/v2\/posts\/5451\/revisions"}],"wp:attachment":[{"href":"https:\/\/writezilas.com\/essays\/wp-json\/wp\/v2\/media?parent=5451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/writezilas.com\/essays\/wp-json\/wp\/v2\/categories?post=5451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/writezilas.com\/essays\/wp-json\/wp\/v2\/tags?post=5451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}