How baysides current ratio has increased from 2017

Assignment Help Financial Accounting

Reference no: EM133337236

Question: Bayside Memorial Hospital's financial statements follow:

INCOME STATMENT	2018	2017
Revenues:
Patient service revenue	$106,502	$95,398
Less: provision for bad debts	4,328	3,469
Net patient service	$102,174	$91,929
Premium revenue	5,232	4,622
Other revenue	3,644	6,014
Total operating revenues	$111,050	$102,565

Expenses:
Nursing services	$58,285	$56,752
Dietary services	5,424	4,718
General services	13,198	11,655
Administrative services	11,427	11,585
Employee health and welfare	10,250	10,705
Malpractice insurance	1,320	1,204
Depreciation	4,130	4,025
Interest expense	1,542	1,521
Total expenses	$105,576	$102,165
Operating income	$5,474	$400
Nonoperating income	2,098	1,995
Net income	$7,572	$2,395

BALANCE SHEET	2018	2017
Cash and equivalents	$3,263	$3,095
Short-term investments	4,000	2,000
Net patient accounts recevable	23,840	22,738
Inventories	3,177	2,982
Total current assets	$34,280	$30,815
Gross property and equipment	$145,158	$140,865
Accumulated depreciation	25,160	21,030
Net property and equipment	$119,998	$119,835
Total Assets	$154,278	$150,650

Accounts payable	$4,707	$5,145
Accrued expenses	5,650	5,421
Notes payable	2,975	6,237
Total current liabilities	$13,332	$16,803
Long-term debt	$28,750	30,900
Finance lease obligations	1,832	2,155
Total long-term liabilities	$30,582	$33,055
Net assets (equity)	$110,364	$100,792
Total liabilities and net assets	$154,278	$150,650

Continuing from the previous questions, calculate Bayside's 2018 current ratio.

Round to one decimal place.

2017	Industry average
Bayside's current ratio	1.8	2

Note how Bayside's current ratio has increased from 2017, and is now above the industry average.

Bayside's liquidity, measured by its current ratio, has improved.

Reference no: EM133337236

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