JB ALLEN FORMULA & DEFINITIONS

Question 1

ASSETS=LIABILITIES + CAPITAL
EX: Total Liabilities= $4,502,202 +
Total Capital= $3,529,508
Assets =$8,031,710

Answer 1

A=L+C

Question 2

CURRENT RATIO=CURRENT ASSETS/ CURRENT LIABILITIES
EX: Current Assets= $403,898
Current Liabilities= $367, 000
Ratio = 1.1

Answer 2

CR=CA/CL

Question 3

Ratio is always a ___, and usually shown as a decimal.

1. Percentage
2. Addition
3. Multiplication
4. None of the above

Answer 3

Percentage

Question 4

FTE is defined as ___.

1. Fair Trade Equivalent
2. Full Time Equivalent
3. Full Time Employment
4. None of the above

Answer 4

Full Time Equivalent

Question 5

TFC is defined as?

1. Total Financial Census
2. Total Fixed Cost
3. Time for Coffee
4. None of the above

Answer 5

Total Fixed Cost

Question 6

TVC is defined as?

1. Total Variable Cost
2. Total Variable Census
3. Total Volume Costs
4. None of the above

Answer 6

Total Variable Cost

Question 7

WORKING CAPITAL = Current assets - Current Liabilities

Answer 7

WC=CA-CL

Question 8

CURRENT RATIO = Current Assets/Current Liabilities

Answer 8

CR=CA/CL

Question 9

AVERAGE COLLECTION PERIOD is figured over a ___ day period usually.

1. 90
2. 30
3. 365
4. 300

Answer 9

365

Question 10

To figure AVERAGE COLLECTION PERIOD you know to figure 365 days times ___ divided by ___.

1. Accounts Rec/Net operating Revenues
2. Acct Pay/ Net Receivables
3. AR/NOR
4. 1 and 3

Answer 10

Accounts Rec/Net Operating Revenues or

AR/NOR

Question 11

WC=CA-CL

Answer 11

Working Capital=
Current Assets
MINUS
Current Liabilities

Question 12

CR=CA/CL

Answer 12

Current Ratio=
Current Assets
DIVIDED BY
Current Liabilities

Question 13

Percent of Occupancy=
INFO
Total of beds 150
30 day period gives them 4200 occupied bed days
Figure
4200/30 = 140/150 = .93
.93 times 100 gives % = 93%

Answer 13

93%

Question 14

Ave Length of Stay=Average Daily Census/# of beds

Answer 14

Ave Length of Stay=
Average Daily Census
DIVIDED BY
# of beds

Question 15

To figure TURNOVER PERCENT RATE
Figure # employees terminated times 100
Divided by # of Full Time Equivalent (By month or year)

Answer 15

TURNOVER PERCENT RATE=# Term Employee/FTE

Question 16

To figure
AVERAGE DAILY CENSUS
Take Total patient days and divide by # of days in month

Answer 16

Ave. Daily Census= TPD/# days in month

Question 17

To figure
STRAIGHT LINE DEPRECIATION
Subtract Salvage Value from Cost of Equipment then
Divide by # of years of depreciation
Then
Divide by 12 months

Answer 17

$88,000 - $11,200 = $76,800 / 8 =$9600 / 12=

$800 per month

Question 18

RATIO=CL/TA

Answer 18

RATIO=
CURRENT LIABILITIES/
TOTAL ASSETS

Question 19

CR= ?
CL= ?
CA= ?

Answer 19

CURRENT RATIO
CURRENT LIABILITIES
CURRENT ASSETS

Question 20

PAYBACK PERIOD=
COST OF EQUIPMENT/OPERATING COST PER YEAR
EX:
$15,000/$3000 = 5
PAYBACK PERIOD IS 5 YEARS

Answer 20

5