Before you learned algebra, you first had to learn basic addition, subtraction, multiplication, and division. Similarly, before you can fully understand the finances of a health care organization, you first need to be able to apply basic financial calculations used in almost all domains of accounting. A firm grasp of these accounting concepts will better enable you to confidently make budgetary and resource decisions. In this Assignment, you complete calculations that will familiarize you with some of the necessary basic accounting concepts.
Based on the information and financial statements below, calculate the following financial ratios in an Excel Spreadsheet:_x000D_ _x000D_ Current Ratio_x000D_ = Total Current Assets / Total Current Liabilities_x000D_ _x000D_ Days of Cash on Hand_x000D_ = Cash / (Total Operating Expense / 365 days)_x000D_ _x000D_ Age of Accounts Receivable_x000D_ = Accounts Receivable / (Net Patient Service Revenue / 365)_x000D_ _x000D_ Age of Physical Plant_x000D_ = Accumulated Depreciation / Depreciation Expense_x000D_ _x000D_ Debt to Equity Ratio_x000D_ = [Long Term] Debt / Net Assets_x000D_ _x000D_ Debt to Assets Ratio_x000D_ = [Long Term] Debt / Total Assets_x000D_ _x000D_ Collection Rate_x000D_ = Net Patient Service Revenue / Gross Patient Service Revenue_x000D_ _x000D_ Operating Margin Ratio_x000D_ = Gain or (Loss) from Operations / Net Patient Service Revenue_x000D_ _x000D_ Note: For those Assignments in this course that require you to perform calculations you must:_x000D_ _x000D_ Use the 'Week 3 Application Assignment Template' from your Learning Resources_x000D_ Show all your calculations and formulas in the spreadsheet_x000D_ A title and reference page are NOT needed in this assignment. Put your name and assignment at the top of the Excel spreadsheet._x000D_ _x000D_ For those not comfortable with the use of Microsoft Excel, this weekâ€™s Optional Resources suggest several tutorials._x000D_ _x000D_ To prepare:_x000D_ _x000D_ Review the information in this weekâ€™s Learning Resources dealing with ratios and how they are calculated._x000D_ View the Week 3 Application Assignment Tutorial: Ratio Calculations, (video) provided in this weekâ€™s Learning Resources._x000D_ Use the Week 3 Application (Scenario) Assignment Template, provided in this weekâ€™s Learning Resources, to complete this assignment. _x000D_ Review the Statement of Revenues and Expenses in the Week 3 application (scenario) assignment template. With the information, calculate the financial ratios. _x000D_ Assignment Rubric:_x000D_ Current ratio problem_x000D_ Days of cash on hand problem_x000D_ Age of Accounts Receivable problem_x000D_ Age of Physical Plant problem_x000D_ Debt to Equity Ratio problem_x000D_ Debt to Assets Ratio problem_x000D_ Collection Rate problem_x000D_ Operating Margin Ratio problem