Assignment Application Basic Financial CalculationsBefore
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Assignment: Application: Basic Financial CalculationsBefore you learned algebra, youfirst had to learn basic addition, subtraction, multiplication, and division.Similarly, before you can fully understand the finances of a health careorganization, you first need to be able to apply basic financial calculationsused in almost all domains of accounting. A firm grasp of these accountingconcepts will better enable you to confidently make budgetary and resourcedecisions. In this Assignment, you complete calculations that will familiarizeyou with some of the necessary basic accounting concepts.Based on the information andfinancial statements below, calculate the following financial ratios in anExcel Spreadsheet:Current Ratio= TotalCurrent Assets / Total Current LiabilitiesDays of Cash on Hand= Cash / (TotalOperating Expense / 365 days)Age of Accounts Receivable= AccountsReceivable / (Net Patient Service Revenue / 365)Age of Physical Plant=Accumulated Depreciation / Depreciation ExpenseDebt to Equity Ratio= [LongTerm] Debt / Net AssetsDebt to Assets Ratio= [LongTerm] Debt / Total AssetsCollection Rate= NetPatient Service Revenue / Gross Patient Service RevenueOperating Margin Ratio= Gain or(Loss) from Operations / Net Patient Service RevenueNote: For those Assignments in this course that require you toperform calculations you must: ·Use the ‘Week 3 Application Assignment Template’ from yourLearning Resources·Show all your calculations and formulas in the spreadsheetA title and reference page are NOTneeded in this assignment. Put your name and assignment at the top of the Excelspreadsheet.For those not comfortable with theuse of Microsoft Excel, this week’s Optional Resources suggest severaltutorials.To prepare:Review the information in this week’s LearningResources dealing with ratios and how they are calculated.View the Week 3 ApplicationAssignment Tutorial: Ratio Calculations,(video) provided in this week’s Learning Resources.Use the Week 3 Application (Scenario) AssignmentTemplate, provided in this week’sLearning Resources, to complete this assignment. Review the Statement of Revenues and Expenses in theWeek 3 application (scenario) assignment template. With theinformation, calculate the financial ratios.
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