You have just been selected as the new Chief Executive Officer of OHC Medical Center, a 600-bed hospital in the suburbs of a city with a population of over 1.5 million. The former CEO, Ms. Andrews, was terminated because of her inability to engage in key managerial functions. Ms. Andrews was unable to effectively use financial information to assess the financial health of OHC and make decisions regarding current and future operations of OHC. At the request of the Board of Trustees, you have been scheduled to meet the organization''s Chief Financial Officer and Accountant. They have provided the following financial information. Using the figures evaluate the financial health of OHC accurately. Provide the Board of Trustees with your conclusions about the financial health of the organization. Your discussion should include the state of the organization at the end of 2006 as well as a comparison of the years 2005 and 2006.Be sure to show all formulas and calculations used in your presentation. Relevant ratios should be applied and conclusions drawn. INCOME STATEMENT 2006 2007 Patient Revenues $62,005,000 $51,923,000 Deductions from Revenue $5,678,000 $6,703,000 Net Patient Revenue $56,327, 000 $45,220,000 Other operating Revenues $1,689,000 $4,350,000 Total revenues $58,016,000 $49,570,000 Salaries $13,620,000 $10,670,000 Other Expenses $7,026,000 $4,723,000 Total Expenses $20,646,000 $15,393,000 BALANCE SHEET 2006 2007 Assets - - Cash and Cash Equivalent $3,599,000 $1,605,000 Accounts Receivables $5,304,000 $7,603,000 Total Current Assets $8,903,000 $9,208,000 Other Assets $9,968,000 $12,654,000 Property, Plant and Equipment $25,579,000 $27,508,000 TOTAL ASSETS $44,450,000 $49,370,000 - - - Liabilities - - Accounts Payable $1,889,000 $1,234,000 Other Current Liabilities $4,010,000 $3,126,000 Total Current Liabilities $5,899,000 $4,360,000 Long-Term Debt $35,324,000 $28,292,000 TOTAL LIABILITIES AND DEBT $41,223,000 $32,652,000