Health Care Finance, Baker, J. and Baker, R. (2013). Health Care Finance Basic Tools for
Nonfinancial Managers, 4rd ed. Boston, MA: Jones and Bartlett.
1.) Complete a Liquidity Ration and Profitability Ratios Worksheets for the following: Example pg 210
a. Liquidity Ratios and Profitability Ratios. Refer to MHS case study for the following:
- Set up a worksheet for the liquidity ratio. Compute the four liquidity rations using MHS Financial Statement.
2.) Refer to MHS Financial Statements for the following.
- Common size the MHS statement of revenue and expenses.
- b. Perform trend analysis on the MHS statement of revenue and expenses.
3.) Budget assumptions include both inpatient and outpatient revenue and expenses. Assumptions are as follows:
As to the initial budget;
· The budget anticipated 30,000 inpatient days this year at and average of $650 revenue per day.
· Inpatient expenses were budgeted at $600 per patient day.
· The budget anticipated 10,000 outpatient visits this year at an average of $400 revenue per visit.
· Outpatient expenses were budgeted at $350 per visit.
As to the Actual result:
· Assume that only 27,000 or 90% of the inpatients days are going to actually be achieved for the year.
· The average revenue of $650 per day will be achieved for these 270,000 inpatients days.
· The outpatient visits will actually amount to 110% or 11,000 for the year.
· The average revenue of $400 per visit will be achieved for these 11,000 visits.
· Further assumer that, due to the heroic efforts of the CFO, the actual inpatients expenses will amount to $11,600,000 and the actual outpatient expenses will amount to $4,000,000.
Set up three worksheets that follows the format of those in static budget, geared towards only one level of activity and remaining constant or static.
However, in each of your worksheets make two lines for revenue:label one as Revenue-Inpatientand the other Revenue-Outpatient. Add a revenue Subtotal line. Likewise, make two lines for expenses; label one as Expense-Inpatient and the other Expense-Outpatient. Add andExpense Subtotal Line.
- Using the new assumptions, complete the first worksheet for "As Budgeted."
- Using the new assumptions, complete the second worksheet for "Actual."
- Using the new assumptions, complete the third worksheet for "Static Budget Variance."
4.) The necessary inputs for target operating income include the following: Computer the required revenue to achieve the target operating income and compute a contribution income statement to provide the totals.
- Desired (target) operating income amount = $20,000.
- Unit price for sales = $500.
- Variable cost per unit = $300.
- Total fixed cost = $10,000
5.) Acme Medical Supply Company desires a target operating income amount of $100,000 with assumptions inputs as follows: Compute the required revenue to achieve the target operating income and compute a contribution income statement to provide the totals.
- Desired )target) operating income amount = $100,000
- Unit price for sales = $800.
- Variable cost per unit = $60.
- Total fixed cost = $60,000.
|Due By (Pacific Time)
||03/15/2015 03:00 pm