HCS 405 Week 4 SimulationPatton-Fuller Ratio Computation

Unaudited Statements

1. The Current Ratio, to 1 (2009) and 15.5 to 1 (2008), are due to a decrease in current assets of 1,159, and an increase in current liabilities of 15,427, which indicates a 10.1 to 1 change from 2008 to 2009 in the ratio of assets to liabilities. This performance measurement shows that the hospital assets dropped while the liabilities increased. The increase of 22,121 in Accounts Receivables is contributing to the decreasing ability of the hospital to pay its short term debts. In regard to the CEO statement that every financial ratio has improved, we disagree with that statement because the report shows clearly that the Current Ratio dropped from 2008 to 2009.

2. The Quick Ratio are to 1...