1. Case Study for final exam review
Waddah Tibawi

2. Case Study: ABC Hospital
Following are comparative balance sheets and income statements for 2002 and 2003 for ABC Hospital.
Additional information:
All sales were made on account
The market price per share of common stock is $50 per share.
50,000 shares of common stock were issued on January 1, Therefore, the weighted average number of shares during 2003 was 600,000 shares.

5. Using the attached information for ABC Hospital, answer the following questions:
Ratio Analysis – Profitability: Calculate Net profit margin and Gross profit margin for year 2002 and Comment on the Profitability of ABC Hospital for both years based upon your results.
Ratio Analysis – Liquidity: For the year 2003 only, calculate Current ratio, Acid test ratio, and Earnings Per Share (EPS). Use the results of your calculations to comment on the liquidity of the company, and investor’s earnings on their shares.
As a service company, what are the tools (techniques) available for ABC Hospital to measure its services quality? Explain each one and comment if it is suitable for ABC Hospital to use in the Kuwaiti market.