Ratio analysis of two competing not-for-profit hospitals revealed the following values:

Milestone Hospital Southwest Hospital
Operating Margin 2.3% 5.4%
Current Ratio 1.50 2.20
Days Cash on Hand 128 days 112 days
Days in Receivables 72 days 58 days
Liabilities to Fund Balance 2.45 1.78

Based on these data, which of the following is an accurate conclusion?

a. Based on Liabilities to Fund Balance, Birchtree Hospital is more solvent than Southeast Hospital.
b. Based on Liabilities to Fund Balance, Southeast Hospital is more solvent than Birchtree Hospital.
c. Based on the Current Ratio, Birchtree Hospital is more solvent than Southeast Hospital.
d. Based on the Current Ratio, Southeast Hospital is more solvent than Birchtree Hospital

Answer:

The correct option is b. Based on Liabilities to Fund Balance, Southwest Hospital is more solvent than Milestone Hospital.

Explanation:

Note: There is a mistake in the options given in the question as the names of the hospitals in the options are different from the ones in the data provided. The correct options are therefore provided before answering the question as follows:

Based on these data, which of the following is an accurate conclusion?

a. Based on Liabilities to Fund Balance, Milestone Hospital is more solvent than Southwest Hospital.

b. Based on Liabilities to Fund Balance, Southwest Hospital is more solvent than Milestone Hospital.

c. Based on the Current Ratio, Milestone Hospital is more solvent than Southwest Hospital.

d. Based on the Current Ratio, Southwest Hospital is more solvent than Milestone Hospital

Explanation of the answer is now given as follows:

First is that a current ratio is a liquidity ratio not a solvency ratio. Therefore, options c and d are NOT correct.

Solvency ratio measures the extent which the fund balance can pay the liabilities of a not-for-profit organization.

The lower the Liabilities to Fund Balance, the more solvent a not-for-profit organization is.

Since the 1,78 Liabilities to Fund Balance of Southwest Hospital is lower than 2.45 Liabilities to Fund Balance of Milestone Hospital, it therefore implies that the correct option is b. Based on Liabilities to Fund Balance, Southwest Hospital is more solvent than Milestone Hospital.

Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $297,000 for November, $317,000 for December, and $217,000 for January. Collections are expected to be 70% in the month of sale and 30% in the month following the sale. The cost of goods sold is 75% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 80% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $21,800. Monthly depreciation is $24,500. Ignore taxes. Balance Sheet October 31 Assets Cash$28,500 Accounts receivable 80,500 Merchandise inventory 178,200 Property, plant and equipment, net of $624,000 accumulated depreciation 1,011,000 Total assets$1,298,200 Liabilities and Stockholders' Equity Accounts payable$243,000 Common stock 747,000 Retained earnings 308,200 Total liabilities and stockholders' equity$1,298,200 Accounts payable at the end of December would be:

Dr. Jones, a dentist, is choosing between driving and flying from Pittsburgh to New York City. If Jones drove, she would have to close her office four hours earlier than if she flew by airplane. Her expected income (after taxes) from her practice is $50 per hour. Assuming all other factors are equal, if Jones was a rational decision maker, she would drive if the price differential (air cost minus driving) was greater than:_______.
a. $50.
b. $100.
c. $150.
d. $200.

Vaughn Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,088,000 on March 1, $1,236,000 on June 1, and $3,090,260 on December 31. Vaughn Company borrowed $1,083,960 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 5-year, $2,493,000 note payable and an 10%, 4-year, $3,319,800 note payable. Compute the weighted-average interest rate used for interest capitalization purposes.

Pendleton Company, a merchandising company, is developing its master budget for 2015. The income statement for 2014 is as follows:
Pendleton Company Income Statement For Year Ending December 31, 2014
Gross sales $3,000,000
Less:
Estimated uncollectible accounts (60,000)
Net sales 2,940,000
Cost of goods sold (1,650,000)
Gross profit 1,290,000
Operating expenses (including $25,000 depreciation) (750,000)
Net income $540,000
The following are management's goals and forecasts for 2015:
1.Selling prices will increase by 6 percent, and sales volume will increase by 4 percent.
2.The cost of merchandise will increase by 3 percent.
3.All operating expenses are fixed and are paid in the month incurred. Price increases for operating expenses will be 10 percent. The company uses straight-line depreciation.
4.The estimated uncollectibles are 2 percent of budgeted sales.
Prepare a budgeted functional income statement for 2015.

The advantages of wireless networks include( select all that apply)

added security
decreased cost
increased flexibility
increased transmission distance

Carver Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow:
Sales are budgeted at $357,000 for November, $327,000 for December, and $307,000 for January.
Collections are expected to be 80% in the month of sale and 20% in the month following the sale.
The cost of goods sold is 70% of sales.
The company desires to have an ending merchandise inventory equal to 70% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
Other monthly expenses to be paid in cash are $25,400.
Monthly depreciation is $17,400.
Ignore taxes.
Balance Sheet
October 31
Assets
Cash $ 21,100
Accounts receivable 78,400
Inventory 174,930
Property, plant and equipment, net of $505,500 accumulated depreciation 1,009,000
Total assets $ 1,283,430
Liabilities and Stockholders’ Equity
Accounts payable $ 275,500
Common stock 787,000
Retained earnings 220,930
Total liabilities and stockholders’ equity $ 1,283,430
The net income for December would be:_______.

Companies that use debt in their capital structure are said to be using financial leverage. Using leverage can increase shareholder returns, but leverage also increases the risk that shareholders bear. Consider the following case: Sombra Corp. is considering a project that will require $600,000 in assets. The project will be financed with 100% equity. The company faces a tax rate of 35%. What will be the ROE (return on equity) for this project if it produces an EBIT (earnings before interest and taxes) of $145,000

As a marketing manager what efforts you can put in place that can shape your companies brand to meet dramatic developments occurring in the marketplace everyday?

Botany Bay Corporation​ (BBC) of Australia seeks to borrow US$ 30 comma 000 comma 000 in the eurodollar market. Funding is needed for two years. Investigation leads to three possibilities. Compare the alternatives and make a recommendation.
1. Botany Bay could borrow the US$ 30,000,000 for two years at a fixed 5 % rate of interest.
2. Botany Bay could borrow the US$ 30,000,000 at LIBORplus1.500 %. LIBOR is currently 3.500 %​, and the rate would be reset every six months.
3. Botany Bay could borrow the US$ 30,000,000 for one year only at 4.500 %. At the end of the first​ year, Botany Bay would have to negotiate for a new​ one-year loan.
For Alternative​ 1, the interest cost per year is ​$ blank for the first year and ​$ blank for the second year.
For Alternative​ 2, the interest cost per year is ​$ blank for the first year and ​$ blank for the second year.
For Alternative​ 3, the interest cost per year is ​$ blank for the first year and ​$ blank for the second year.

Help! Which education and qualifications are most helpful for Professional Sales and Marketing careers? Check all that apply.

apprenticeships
high school degree
confidence
leadership
bachelor’s degree
stamina

Joan filed her individual income tax return 4½ months after it was due. She did not request an extension of time for filing. Along with her return, Joan remitted a check for $750, which was the balance of the taxes she owed with her return. Disregarding interest, calculate the total penalties that Joan will be required to pay, assuming the failure to file was not fraudulent

In risk management what does risk control include

After its success in Japan, Starbucks worked with local operators, collecting initial fees and then royalties on store revenues as it entered other Asian countries. Starbucks insisted that the local operators incorporate an intensive employee-training program and follow strict specifications regarding the format and layout of the stores. This type of relationship best describes which strategy

Blumen Textiles Corporation began April with a budget for 22,000 hours of production in the Weaving Department. The department has a full capacity of 29,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of April was as follows: Variable overhead $50,600 Fixed overhead 34,800 Total $85,400 The actual factory overhead was $86,400 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department had standard hours at actual production volume of 23,000 hours. Determine the variable factory overhead controllable variance and the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required.

Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred.
Sept. 6 Purchased calculators from Dragoo Co. at a total cost of $1,680, terms n/30.
Sept. 9 Paid freight of $60 on calculators purchased from Dragoo Co.
Sept. 10 Returned calculators to Dragoo Co. for $58 credit because they did not meet specifications.
Sept. 12 Sold calculators costing $580 for $810 to Fryer Book Store, terms n/30.
Sept. 14 Granted credit of $45 to Fryer Book Store for the return of one calculator that was not ordered. The calculator costs $33.
Sept. 20 Sold calculators costing $570 for $740 to Heasley Card Shop, terms n/30.
Journalize the September transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

The actual cost of direct materials is​ $47.50 per pound. The standard cost per pound is​ $51.75. During the current​ period, 7,200 pounds were used in production. The standard quantity for actual units produced is​ 7,100 pounds. How much is the direct materials price​ variance? A. ​$30,600 favorable B. ​$30,600 unfavorable C. ​$30,175 favorable D. ​$30,175 unfavorable

Two parcels of land priced at $2,100 per acre were purchased. One parcel was 5 acres in size, and the other was 1 square mile in size. How much should these two parcels have cost together?

Dinklemyer Corporation uses direct labor hours as its single cost driver. Actual overhead costs and actual direct labor hours for the first five months of the current year are as follows. Month Actual Total Overhead Actual Direct Labor Hours January $ 975,000 19,250 February 950,000 18,400 March 860,000 17,000 April 700,000 12,375 May 760,000 13,200 a. Compute the company's estimated variable manufacturing overhead cost per direct labor hour. b. Estimate the company's total monthly fixed manufacturing overhead cost. c. Estimate the company's total manufacturing overhead for June through August if 40,000 total direct labor hours are budgeted for that specific three-month period.

Companies issue bonds, preferred stock, and common equity to raise capital to invest in capital budgeting projects. Capital is a necessary factor of production, and like any other factor, it has a cost. This cost is equal to the:_______

The sales tax you pay when you gas up your car is regressive.
True.
False

Match the following functions with their descriptions.
A. It allows companies to organize and share information
B. It provides instantaneous tracking by containing identifying information
C. It provides complete visibility of product location Provides access to global markets, suppliers and distribution channels
D. It enables exchange of documents in a standard

impact of a correct stock count

The situations presented here are independent of each other.
For each situation, prepare the appropriate journal entry for the redemption of the bonds.
Flounder Corp. redeemed $124,000 face value, 10% bonds on April 30, 2022, at 105. The carrying value of the bonds at the redemption date was $111,972. The bonds pay annual interest, and the interest payment due on April 30, 2022, has been made and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Debit Credit Date Account Titles and Explanation Apr. 30
Shamrock, Inc. redeemed $162,000 face value, 12.5% bonds on June 30, 2022, at 99. The carrying value of the bonds at the redemption date was $174,960. The bonds pay annual interest, and the interest payment due on June 30, 2022, has been made and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Debit Credit Date Account Titles and Explanation Jun. 30

Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017, or by 20%. Its assets totaled $2 million at the end of 2016. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2016, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 3%, and the forecasted retention ratio is 30%. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest cent.

Which of the following make a person less likely to have health insurance? Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. check all that apply Working for a larger firmunanswered Being a low-wage workerunanswered Being employedunanswered Having excellent healthunanswered Being chronically ill

The local Honda dealer, Finneas Auto, needs to decide how many light bulbs of a particular type to order for repairing Honda automobiles. This light bulb has a demand of 60 units per year and costs $20 each. The holding cost (also known as carrying charge) is 30 percent per year, and the ordering cost is $5 per order. a. What is the EOQ for this item?

In June 2015, the unemployment rate declined to 5.3 percent from 5.5 percent in May. The labor force participation rate also declined from May to June, from 62.9 percent to 62.6 percent. If the labor force participation rate had remained unchanged from May to June, the unemployment rate for June 2015 would be

The form of currency no longer backed by gold is called______

money.

What are THREE purposes of monetary policy? A to eliminate competition B. to promote price stability c. to eliminate unemployment D. to devalue foreign currency E, to promote economic growth F to control federal spending​

On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The company borrowed $2,050,000 at 11% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2021:$6,000,000, 16% bonds$4,000,000, 11% long-term note Construction expenditures incurred during 2021 were as follows:January 1 $ 840,000March 31 1,440,000June 30 1,088,000September 30 840,000December 31 640,000Required:Calculate the amount of interest capitalized for 2021 using the specific interest method. (Do not round the intermediate calculations. Round your percentage answers to 1 decimal place (i.e. 0.123 should be entered as 12.3%).)