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?