Great Deal! Get Instant $10 FREE in Account on First Order + 10% Cashback on Every Order Order Now

create the 2008 and 2009 common size income statements and balance sheet statements for advanced healthcare and describe why they are useful. Note that you will have to calculate total equity by using...

1 answer below »
create the 2008 and 2009 common size income statements and balance sheet statements for advanced healthcare and describe why they are useful. Note that you will have to calculate total equity by using the formula A= L+ E or A-L = E
Document Preview:

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...

Answered Same Day Dec 26, 2021

Solution

Robert answered on Dec 26 2021
123 Votes
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
Revenues 2008
Common size
income statement
= (item / total
assets )x 100
2009
Common size
income statement
= (item / total
assets )x 100
Net Patient Service revenue 30.576 94.29 34.582 94.96
Other revenue 1.853 5.71 1.834 5.04
Total Revenue 32.429 100.00 36.416 100.00

Expenses

Salaries and wages 12.468 38.45 13.994 38.43
fringe benefits 2.408 7.43 2.568 7.05
Interest Expense 1.598 4.93 1.776 4.88
Depreciation 2.658 8.20 2.778 7.63
Provision for bad debts 0.655 2.02 0.776 2.13
Professional Liability 0.201 0.62 0.218 0.60
Other 10.339 31.88 11.848 32.54
Total Expenses 30.327 93.52 33.958 93.25

Excess of revenue over expenses 2.102 6.48 2.458 6.75
Common size balance sheet is as follows:
Assets 2008...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here