exhibits 4 27a and 4 27b show the statement of operations and balance sheet for 270 384595

Exhibits 4 27a and 4 27b show the statement of operations and balance sheet for 270 bed Lake Community Hospital for 20X0 and 20X1. Adjusted discharges for 20X1 are 19,000 and 20,000, respectively. a. Perform a horizontal analysis on both statements. . Using these financial performance measures, evaluate the financial state of Lake Community. The debt principal payments each year are $5.5 million, whereas adjusted discharges are 19,000 in 20X0 and 20,000 in 20X1. Exhibit 4 27a Statement of Operations for Lake Community Hospital Lake Community Hospital Statement Operations (in thousands) for the Years Ended December 31, 20X1 and 20X0 Revenues 20X1 20X0 Net Patient Service Revenue $197,000 $184,000 Other Operating Revenue 6,400+ 5,700+ Total Operating Revenues 203,400 189,700 Operating Expenses Salaries and Benefits 101,600 93,500 Supplies and other Expenses 70,100 61,000 Depreciation 12,000 11,300 Provision for bad Debts 9,173 9,167 Interest 1,413+ 1,433+ Total Operating Expenses 194,286 176,400 Income from Operations 9,114 13,300 Non Operating Income Investment Income/Contributions 9,500+ 8,500+ Excess of Revenues over Expenses 18,614 21,800 Net Income 18,614 21,800 Exhibit 4 27b Balance Sheet for Lake Community Hospital Lake Community Hospital Balance Sheet (in thousands) for the Years Ended December 31, 20X1 and 20X0 Current Assets 20X1 20X0 Cash and Cash Equivalents $40,500 $15,500 Net Patient Accounts Receivables 29,500 26,400 Inventories 3,800 4,000 Other Current Assets 10,500+ 5,200+ Total Current Assets 84,300 51,100 Plant, Property, and Equipment Gross Plant, Property, and Equipment 115,000 200,500 (Less Accumulated Depreciation) (65,000) (107,000) Net Property, Plant and Equipment 50,000 93,500 Funded Depreciation/Board Designated Funds Cash and Short Term Investments 185,000+ 110,000+ Total Assets 319,300 254,600 Current Liabilities Accounts Payable 9,500 8,500 Salaries Payable 4,500 3,500 Notes Payables 4,300+ 4,500+ Total Current Liabilities 18,300 16,500 Long Term Liabilities Bonds Payable 54,000 27,500 Total Long Term Liabilities 54,000 27,500 Net Assets 247,000+ 210,600+ Total Liabilities and Net Assets 319,300 254,600