Author Question: A relation is in ______________________________ if it does not contain repeating groups. Fill in ... (Read 53 times)

lb_gilbert · **on:** Jul 5, 2018

A relation is in ___________________ ___________ if it does not contain repeating groups.
Fill in the blank(s) with correct word

Question 2

(Financial statement analysis of a governmental enterprise hospital)

Following is a trial balance (with 000 omitted for simplification) showing the accounts of Beta Hospital at December 31, 2013 .

Using the information from the trial balance, analyze Beta's financial statements by answering the following questions. Show all calculations.
a. What is the current ratio?
b. What is the number of days of revenue in net patient accounts receivable?
c. How much is the excess of revenues over expenses?
d. What is the earnings margin?
e. What is the long-term debt-to-equity ratio at year-end?
f. What is the interest coverage (times interest earned)?

Debits Credits
Cash 5,000
Patient accounts receivable 8,000
Allowance for bad debts 1,000
Food and medicines inventory 2,000
Buildings. 40,000
Accumulated depreciation, buildings 8,000
Equipment 20,000
Accumulated depreciation, equipment 10,000
Land 5,000
Accounts payable 6,000
Accrued interest payable 200
Current portion of bonds payable 1,500
Long-term bonds payable 34,000
Net assets, January 1, 2008 17,300
Patient service revenues (net) 36,000
Patient care expense 20,000
Dietary expense 2,000
General and administrative expense 6,000
Bad debts expense 1,000
Depreciation., buildings and equipment 4,000
Interest expense 1,000 _______
Totals 114,000 114,000

rachel · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

first normal form (1NF)
1NF
first normal form

Answer to Question 2

a. Current assets (Cash 5,000 + Patient accounts receivable 8,000 - Allowance for bad debts 1,000 + Food and medicines inventory 2,000) = 14,000;
Current liabilities (Accounts payable 6,000 + Accrued interest payable 200 +Current portion of bonds payable 1,500) = 7,700;
Current ratio: Current assets / Current liabilities = 14,000 / 7,700 = 1.82

b. Net patient accounts receivable / Net patient service revenues / day = 7,000 / (36,000 / 365) = 7,000 / (98.63) = 71 days

c. Net patient service revenue = 36,000
Expenses
Patient care expense 20,000
Dietary 2,000
General and administrative 6,000
Bad debts 1,000
Depreciation 4,000
Interest 1,000
34,000
Excess of revenues over expenses 2,000

d. Earnings margin =
Excess of revenues over expenses / Revenues, gains, other support
= 2,000 / 36,000 = 5.55

e. Long-term bonds payable = 34,000;
Year-end total net assets =
Net assets at beginning of year (17,300) + Excess of revenues over expenses for the year (2,000) = 19,300;
Long-term debt to equity ratio =
Long-term debt / Total net assets = 34,000 / 19,300 = 176

f. Times interest earned =
(Excess of revenues over expenses + Interest expense) / Interest expense
= 3,000 / 1,000 = 3 times