d 93 902 PM Deadline Due by the end of Week 3 at 1159 pm ET

.d 93% 9:02 PM Deadline Due by the end of Week 3 at 11:59 pm, ET. Directions Analyze Statement of operations and balance sheet for Newport Hospital, Exhibit 4-1 of Chapter 4 of your textbook, and respond to the following: . Is Newport Hospital profitable? Why or why not? .How effective is this organization iin collecting receivables? Are they in a good position to pay their bills? . How efficiently is the organization using its assets? Are the organization\'s plant and equipment in need of replacement? . Is the organization in a good position to take on additional debt? Use at least two scholarly resources and APA formatting to support your response. Submit your document.

Solution

A. No, the hospital is not profitable when compared with previous years operating income. As it decreased from 1,054,186 to 3,30,909. In other view hospital is in profitable position in 20X1 or 20X0 as operating income is in positive values.

B. Hospital is not effective in collecting receivables because the patient receivables are increased from last year 1400013 to 1541244 which results in blocking of cash inflow.

C. No, the hospital is not in a good position to pay their bills because the accounts payable increased from last year 166600 to current year 387646 which shows that cash outflow is decreased implies payment to creditors is decreased and dues are more.