Reference no: EM132485870
Refer to Megatropolis Hospital's financial statements below for calculating the ratios requested in the next five problems.
Megatropolis Hospital
Statement of Operations
For the Year Ended December 31, 2019
Revenues, Gains, Other Support
Net patient service revenue $ 1,500,000
Other revenue 200,000
Total Revenue 1,700,000
Expenses
Nursing Services 1,200,000
Administrative Services 200,000
Depreciation 100,000
Other Expenses 50,000
Total Expenses 1,550,000
Operating Income 150,000
Investment Income 50,000
Excess revenues over expenses 200,000
Increase in Unrestricted
Net Assets $ 200,000
Megatropolis Hospital
Balance Sheet
As of December 31, 2019
Assets
Current Assets
Cash and cash equivalents $ 50,000
Net patient receivables 350,000
Total Current Assets 400,000
Properties and Equipment
Gross properties and equipment $ 900,000
Less accumulated depreciation (475,000)
Net Properties and Equipment 425,000
Total Assets $ 825,000
Liabilities and Net Assets
Current Liabilities
Accounts Payable 200,000
Salaries Payable 50,000
Total Current Liabilities 250,000
Notes Payable 200,000
Unrestricted Net Assets 375,000
Total Liabilities and Net Assets $ 825,000
Question 1. What is Megatropolis Hospital's operating margin?