Question: Solution: Common size statment is the statement showing the proportion of items to some of the related items. Common size income statement can be expressed and calculated as follows = (Item / total revenue)*100 Common size balance sheet can be expressed and calcualted as follows : (Item / total assets )*100 Benefits are : to create the standardized financial statements Helps in revelaing trends as to how the company is performing. Common size Income statement is as follows Revenues2008Common size income statement = (item / total assets )x 1002009Common size income statement = (item / total assets )x 100Net Patient Service revenue30.57694.2934.58294.96Other revenue1.8535.711.8345.04Total Revenue32.429100.0036.416100.00ExpensesSalaries and wages12.46838.4513.99438.43fringe benefits2.4087.432.5687.05Interest Expense1.5984.931.7764.88Depreciation2.6588.202.7787.63Provision for bad debts0.6552.020.7762.13Professional Liability0.2010.620.2180.60Other10.33931.8811.84832.54Total Expenses30.32793.5233.95893.25Excess of revenue over expenses2.1026.482.4586.75Common size balance sheet is as follows: Assets2008Common size balance Sheet= (item/ total assets)x1002009Common size balance Sheet= (item/ total assets)x100Cash and investment5.0699.572.7955.15acount receivables (net)5.67410.717.41313.66Inventories0.5230.990.6011.11other currect assets0.7031.330.9231.70Total current assets11.96922.6011.73221.62Gross plant and equipment55.33359.552Accumulated depreciation14.33817.00940.99577.4042.54378.38Total Assets52.96410054.275100Liabilities and Net assetsAccounts payable1.2532.371.763.24Accruals1.5032.841.1762.17Current portion of LT Debt1.3412.531.4652.70Total current liabilities4.0977.744.4018.11long term debt19.22236.2917.79532.79total liabilities = Total...
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