NAB, ALLEN, POWELL FORMULA QUESTIONS

Question 1

EMPLOYEE VACANCY RATE
# of positions unfilled divided by total # of same type positions
EX:
8 CNA positions/42 CNA positions= 2.095 or 2.1

So, information is:
7 openings for CNA
Total CNA positions is 67
Answer= ?

Answer 1

0.1 or

Question 2

EMPLOYEE TURNOVER RATE
# of positions unfilled divided by total # of same type of positions
EX:
2 Housekeepers Terminated for theft/7 housekeeper positions=0.285 or 0.3
So, information is:
1 Dishwasher Terminated
Total Dishwasher positions is 4
Answer= ?

Answer 2

.025 or 25%

Question 3

WORKING CAPITAL FORMULA

Information
Current Assets of The Laurels SNF= $403,898
Current Liabilities of The Laurels = 367,000
Total Working Capital = ?

Answer 3

Total Working Capital

$36,898

Question 4

A SNF has 100 bed capacity with 80 residents. What is the Occupancy Rate?

Answer 4

80%

Question 5

# of employee total hours = 288
# of current residents = 89
What is the Staff to Patient Ratio

Answer 5

3.24 PPD

Question 6

CURRENT RATIO
Information:
Assets=$543,000
Liabilities= $181,000
What is the current asset to liability ratio?

Answer 6

3 to 1

Question 7

PERCENT OF OCCUPANCY
Information
Total beds 150
Occupied bed days 4200
What is average percent of occupancy in a 30 day period?

Answer 7

.93 or 93%

Question 8

A 100 bed facility with an average of 90% occupancy has a total 30 day monthly expense of $135,000.
What is the average cost per resident per day?

Answer 8

$50

$135,000/30 = $4,500/90=$50 per day

Total Monthly Expense divided by number of resident days in month then
divided by average # of residents per day

Question 9

PAYBACK PERIOD
A machine is purchased for $30,000 to replace a worker earning $20,000 per year.
What is the payback period?

Answer 9

1.5 years

$300,000/$20,000=1.5