Refer to Megatropolis Hospitalâs financial statements below for calculating the ratios requested in questions
Megatropolis Hospital
Statement of Operations
For the Year Ended December 31, 2011
Revenues, Gains, Other Support
Net patient service revenue $ 1,500,000
Other revenue200,000
Total Revenue 1,700,000
Expenses
Nursing Services 1,200,000
Administrative Services 200,000
Depreciation 100,000
Other Expenses50,000
Total Expenses1,550,000Operating Income 150,000Investment Income50,000Excess of revenues over expenses 200,000Increase in Unrestricted Net Assets$200,000
Megatropolis Hospital
Balance Sheet
As of December 31, 2011 (2010 omitted)
Assets
Current Assets
Cash and cash equivalents $ 50,000
Net patient receivables350,000
Total Current Assets 400,000
Properties and Equipment
Gross properties and equipment $ 900,000 Less accumulated depreciation475,000Net Properties and Equipment425,000
Total Assets $825,000
Liabilities and Net Assets
Current Liabilities
Accounts Payable 200,000
Salaries Payable50,000
Total Current Liabilities 250,000
Notes Payable 200,000
Unrestricted Net Assets375,000
Total Liabilities and Net Assets$825,000
What is Megatropolis Hospitalâs operating margin?
what is the days in account receivable?
