Assignment#2 - Solve the problem in the attachment.

Assignment#2 - Solve the problem in the attachment. PROBLEMS The problems below are based on the following simplified financial statements for Mercy Health Services: Mercy Health Services Statement of Cash Flows For the Fiscal Years Ending June 30, 2013 and 2012 2013        2012 Cash flows from operating activities Collections from patients and third-party payers    $21,000     $16,000 Collections from other operating activities            2,000        1,400 Payments to suppliers                 (1,700)    (800) Interest payments                    (2,000)    (2,000)    Payments to employees                (15,100)    (12,500) Net cash from operating activities            $ 4,200    $   2,100 Cash flows from investing activities Purchase new equipment                $ (3,000)    $          0    Purchase marketable securities                   (200)                0 Increase in sinking fund                       (200)      (200) Net cash from investing activities            $   (3,400)    $    (200) Cash flows from financing activities Payments of mortgage principal            $   (2,000)    $ (1,800) New mortgage                        1,200              0 Net cash used for financing activities            $     (800)    $ (1,800) Net increase/(decrease) in cash                $            0    $      100 Cash, beginning of year                              500           400 Cash, end of year                        $        500    $      500 Mercy Health Services Statement of Financial Position As of June 30, 2013 and 2012 ASSETS                    2013        2012 Current Cash        $500        $500 Marketable securities            400    200 Accounts receivable, net of $400 and $300 allowance for bad debts    3,000    2,000 Inventory                1,000    500 Prepaid assets                100    100 Total current assets            $5,000    $3,300 Fixed Property, plant, and equipment    $43,000      $40,000 Less accumulated depreciation    17,800    16,000 Net property, plant, and equipment    $25,200      $24,000 Sinking fund                1,800          1,600 Investments                300    300 Total fixed assets            $27,300    $25,900 Total                    $32,300    $29,200 EQUITIES Current liabilities Wages payable                $700           $500 Accounts payable                  700            1,000 Notes payable                      500             500 Deferred revenue                  300             300 Taxes payable                100    100 Total current liabilities            $ 2,300    $ 2,400 Long-term liabilities Mortgage payable            $ 4,200       $ 5,000 Bonds payable                20,000    20,000 Total long-term liabilities        $24,200    $25,000 Net Assets Unrestricted net assets            $ 5,800    $ 1,800 Total net assets            $ 5,800    $ 1,800 Total                    $32,300    $29,200 Mercy Health Services Statement of Operations For the Fiscal Years Ending June 30, 2013 and 2012 2013        2012 Revenues Patient revenues            $22,000    $17,000 Other operating revenues        2,000    1,400 Total revenues                    24,000    $18,400 Expenses Wages for clinical services        $11,000      $9,000 Patient care supplies and food               600           400 Housekeeping services               800           500 Operation and maintenance of plant        1,200        1,000 Administrative services            2,200        2,000 Depreciation and amortization        1,800        1,200 Bad debt expense                   400           300 Interest                    2,000    2,000 Total expenses                    20,000    $16,400 Increase in unrestricted net assets        $ 4,000    $ 2,000 1.    Using these simplified financial statements for Mercy Health Services, complete the following ratios for both 2012 and 2013: a.    Common size cash b.    Common size current liabilities c.    Common size wages for clinical services d.    Current ratio e.    Debt service coverage f.    Plant age g.    Revenue to assets h.    Profit margin    PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET AN AMAZING DISCOUNT :)