Article 2

Review:  Chapters 13, 14, 15,  attached, as well as the  article and the  web page. You will also utilize Appendices 13A, 13B, 13C, and 33A attached as well as the BPreview the document from Dr. Smith and Dr. Browns Financial Statements.

Write Part 1: Open the Financial and Operating Ratios Assignment template attachment. You will be responsible for entering your responses directly into the template provided. You will need to ensure that your responses are thorough, examples are given where indicated, and references are listed in APA format in the space provided within the template. In the assignment template provided, directions to complete Parts 1 through 5 is below:

Part 1: Calculations of Financial Ratios

 Calculate the financial ratios for Dr. Smith and Browns physician practice to analyze the financial viability of the organization.

 Identify the type of ratio for each of the following:

o  Current ratio

o  Quick ratio

o  Debt Service Coverage ratio (DSCR)

o  Operating Margin

o  Return on Total Assets (ROTA)

Part 2: Type of Ratios

 Define the type of ratios used in determining the financial viability of an organization.

o  Liquidity

o  Solvency

o  Profitability

Part 3: Operating Ratios

 Define the financial ratios utilized to determine the financial status of Dr. Smith and Browns physician practice.

 Compare the results in Part 1 with the median to determine the value associated with the financial ratio.

 Analyze the results calculated in Part 1 and explain what the calculated result tells you about the financial health of Dr. Smith and Dr. Browns physician practice

Part 4: Capital Budgeting Expenditures Time Value of Money Calculations 

 Calculate each of the operational ratios for Dr. Smith and Dr. Browns physician practice.

o  Present Value

o  Internal Rate of Return

o  Pay Back Period

Part 5: Evaluation of Capital Expenditures

 Define the time value of money

 Provide a real-world example for the time value of money

 Explain why time is an important factor when considering a capital expenditure.

Write Part 2: After review of the Preview the document and ratios, analyze the feasibility that the Capital Expenditure listed above would benefit Dr. Smith and Dr. Browns practice. 

1. Explain your rationale on whether you would recommend the purchase of the capital expenditures identified. 

2.Include any positive or negative aspects of regulatory or government mandates that were considered in making the decision to purchase the capital expenditures.

Due 1.10.20 @ 9am eastern time w /plag report.  Use the attachments and use your own words!

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