What is the price variance

Assignment Help Finance Basics

Reference no: EM133325632

Megatropolis Hospital's financial statements are below for calculating the ratios requested in

Megatropolis Hospital

Statement of Operations

For the Year Ended December 31, 2022

Revenues, Gains, Other Support

Net patient service revenue $ 6,000,000

Other revenue 800,000

Total Revenue 6,800,000

Expenses

Nursing Services 4,800,000

Administrative Services 800,000

Depreciation 400,000

Other Expenses 200,000

Total Expenses 6,200,000

Operating Income 600,000

Investment Income 200,000

Excess of revenues over expenses 800,000

Increase in Unrestricted Net Assets$ 800,000

Megatropolis Hospital

Balance Sheet

As of December 31, 2022 (2021 omitted)

Assets

Current Assets

Cash and cash equivalents $ 200,000

Net patient receivables 1,400,000

Total Current Assets 1,600,000

Properties and Equipment

Gross properties and equipment $ 3,600,000

Less accumulated depreciation 1,900,000

Net Properties and Equipment 1,700,000

Total Assets $ 3,300,000

Liabilities and Net Assets

Current Liabilities

Accounts Payable 800,000

Salaries Payable 200,000

Total Current Liabilities 1,000,000

Notes Payable 800,000

Unrestricted Net Assets 1,500,000

Total Liabilities and Net Assets$ 3,300,000

Question # 1

What is Megatropolis Hospital's operating margin?

Question # 2

What is Megatropolis Hospital's days in accounts receivable?

Question # 3

What is Megatropolis Hospital's long-term debt to net assets ratio?

Question # 4

What is Megatropolis Hospital's age of plant?

Question # 5

What is Megatropolis Hospital's days of cash on hand?

Question # 6

What are the four phases of management control?

Question # 7

Management has studied work patterns in the housekeeping department and estimates the number of hours to be worked as follows. Hours worked = (1,600 hours per month) + (0.40 × RVUs). For the coming month, management expects RVUs to be 6,000. What should budgeted labor for the month be?

Question # 8

Last year the price for thermometer covers in a pediatrician's office was $.06 each. This year, the covers cost $.08 each. If the office purchased 20,000 thermometer covers this year, what is the price variance?

Reference no: EM133325632

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