Net Revenue and Budgeting
/in Nursing Essay Help /by Eunice Mwangi- Net Revenue and Budgeting
- Name: Megan Coggins Course: NURS 6211 Current Ratio = total current assets/ total current liabilities Days of Cash on Hand = cash/(total operating expense/365) Age of Accounts Receivable = accounts receivable, less allowance for doubtful accounts/(net patient service revenue/365) Age of Physical Plant = accumulated depreciation/depreciation Note: in B cell 2.27 calculation is included 88.79 149.71 -31.42 Debt to Equity Ratio = Long Term Debt/Balance at June 30, 20×2-Total net assets Debt to Assets Ratio = Long TermDebt/total assets 0.49 0.22 Collection Rate = net patient service revenue/gross patient service revenue 0.86 Operating Margin Ratio = gains or loss from operations/net patient service revenue 0.10 31.42 ABC General Hospital Statement of Revenue and Expenses – June 30, 20X2 Assets Current Assets Cash Accounts Receivable less allowance for doubtful accounts Inventory Total Current Assets Fixed Assets Plant and Equipment Less Accumulated Depreciation Total Fixed Assets $6,255,000 $10,000,000 -3,770,000 $6,230,000 Total Assets Liabilities and Net Assets Current Liabilities $1,985,000 3,720,000 550,000 $12,485,000 Accounts Payable Accrued Accounts Payable Total Current Liabilities $1,900,000 850,000 $2,750,000 Long Term Debt Pension Liability Total Liabilities 2,800,000 1,250,000 6,800,000 Net Assets Balance at June 30, 20X1 Gain or (Loss) from Operations 5,685,000 4,775,000 910,000 Balance at June 30, 20X2 – Net Assets $5,685,000 Total Liabilities and Net Assets Gross Patient Service Revenue Inpatient Revenue Outpatient Revenue Total Gross Patient Service Revenue $12,485,000 $8,250,000 2,275,000 $10,525,000 Less: Discounts Net Patient Revenue -1,455,250 $9,069,750 Operating Expenses Salaries & Benefits Supplies and Services Interest Depreciation $5,110,000 2,829,750 100,000 120,000 Total Operating Expense Gain or (Loss) from Operations $8,159,750 $910,000 Name: Assignment: Fixed/Variable Cost Scenario You have performed a cost analysis of your health service organization and have determined the following: based on the latest three years of information, your annual cost of operations is $1,600,000 with annual volume of 10,000 procedures. You have determined that certain of your supply items are fixed in nature (those marked with an F) while others are variable (marked with a V). Supply Items F/V Supply item 1 Supply item 2 Supply item 3 Supply item 4 Supply item 5 Supply item 6 Supply item 7 Supply item 8 Supply item 9 F F F F F F V V V Annual Cost of Operations Average Annual Amount $220,000 180,000 75,000 50,000 25,000 50,000 500,000 300,000 200,000 1,600,000 Question: An insurance company that is considering directing its 1,000 units per year of procedure business to your organization has approached you. Your board has mandated that you make $5 of profit from each of the procedures. You obviously want the highest possible price, but as you enter the negotiations, what is the lowest possible price you would be willing to accept from this payer? Hint: Calculate the variable cost. Fixed/Variable Cost Scenario Supply item 1 Supply item 2 Supply item 3 Supply item 4 Supply item 5 Supply item 6 Supply item 7 Supply item 8 Supply item 9 Total Cost Annual Volume Variable Cost per Unit Profit Target Total (lowest possible price) Variable Fixed Total
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