1. Find current and quick ratio. Show work 2. Find operating margin and total ma
ID: 2342003 • Letter: 1
Question
1. Find current and quick ratio. Show work
2. Find operating margin and total margin. Show work.
3. Find debt ratio, equity ratio, and
debt-to-equity ratio. Show work.
MedStar Health, Inc. Consolidated Statements of Operations and Changes in Net Assets For the Three and Six Months Ended December 31, 2017 and 2016 Dollars in millions) Three Months Ended 2017 2917 Actual Bedget Actval AteadBudget Aciaad Sis Montis Entiet December 31. 2816 December 31 Operating revenues: Net patient service revenue Provision for bad debts $1,242.4 SAM7 (40) Oa 1,187.3 1,1443 1,1154 234L9 1332 $1,200.6 (55.1) (563) S1,1695 $2.3%.6 $2. 013 Total net patient service revenue, net of provision for bad debts 142.7 20992027 52.6 1,394.2 1,406.8 13688 Other operating revenue 1447 1.3688 27782 24 2742 64.2 50.7 123 Net operating revenues Operating expenses: 774.3 7482 7378 1,5093 L887 142 2033 191.8 Purchased services Other operating Interest expense 188.9 207.9 245.2 2314 118.6 134.6 134.2 3927 447-489 4556 2424 263 558 11.1 49.1 1,368.1 1.3885 1,3525 115 12.5 52.5 22.8 104.9 2.719.6 243 224 ma 56.2 Total operating expenses Earnings from operations 26.1 18.3 16.3 43.5 , Non-operating gains (losses): Investment income Net realized gains on sale of investments Unrealized gains on derivative instruments Unrealized gains (losses) on investments Other 5.8 17.0 0.9 4.8 6.3 10.4 9S 73 7.1 3.4 24.6 125 1H 33.8 10.6 (13.2) 14 85.8 4.3 214 402 Total non-operating gains (losses) 115.6 Excess of revenue over expenses $80.4 $39.9 $18.4 $174.2 SsS S1133Explanation / Answer
1. Current ratio = Current assets / current liablities
Quick ratio = (cash and cash equivalents + marketable securities + accounts receivable)/ Total current liabilities
Current assets information not given to do the computaion.
2. Operating margin = Earnings from operations / Net operating revenues
3. Debt ratio = total liabilities / total assets = 3776.5 / 5630.7 = 67%
equity ratio = 100 - debt ratio = 33%
In million Particulars Three months ended Six months ended 2017 actual 2017 budgeted 2016 budgeted 2017 actual 2017 budgeted 2016 budgeted Earnings from operations (a) 26.10 18.30 16.30 58.60 43.50 47.00 Net operating revenues (b) 1,394.20 1,406.80 1,368.80 2,778.20 2,810.40 2,704.20 Operating margin (c ) = (a) / (b) * 100 1.87% 1.30% 1.19% 2.11% 1.55% 1.74% Non-operating gains / (losses) (d) 54.3 21.6 2.1 115.6 43.3 66.3 Total margin (e ) = (c ) + (a) 80.40 39.90 18.40 174.20 86.80 113.30 Total margin ration (f) = (e ) / (b) * 100 5.77% 2.84% 1.34% 6.27% 3.09% 4.19%Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.