Developing Financial Statements
All organizations, including those in the health care industry, need to make money to be profitable and survive. Financial statements, such as balance sheets, profit and loss statements, and cash flow statements summarize an organization's profitability and overall financial status. For this Assignment, you practice developing three key financial statements using data from a medical center.
Sharpe Medical Center
Sharpe Medical Center is a large Midwestern acute care and ambulatory facility serving an urban city population.
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Givens (in '000s):
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Inventory
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$4,000
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Patient revenues (net of contractual allowance)
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$302,000
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Gross plant, property, and equipment
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$375,000
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Net accounts receivable
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$85,000
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Ending balance, temporarily restricted net assets
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$6,000
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Wages payable
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$6,600
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Long-term debt
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$218,400
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Supply expense
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$34,000
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Net assets released from temporary restriction
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$7,000
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Depreciation expense
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$44,000
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General expense
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$95,000
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Provision for bad debt expense
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$4,500
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Cash and cash equivalents
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$18,000
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Transfer to parent corporation
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($3,900)
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Beginning balance, unrestricted net assets
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$239,400
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Accounts payable
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$11,000
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Beginning balance, temporarily restricted net assets
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$13,000
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Interest expense
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$6,000
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Labor expense
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$123,000
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Accumulated depreciation
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$22,000
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Long-term investments
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$20,000
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Ending balance, unrestricted net assets
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$238,000
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To prepare for this Assignment:
Review the Week 7 Assignment document provided to you by the Instructor. Examine the data from the medical center described in the document. Reflect on how you will use this data to develop a balance sheet, profit and loss statement (statement of operations), and cash flow statement (statement of changes in net assets). Refer to the course text for additional guidance.
The Assignment:
Complete a balance sheet, profit and loss statement (statement of operations), and cash flow statement (statement of changes in net assets) using the "Week 7 Financial Statement Excel Template".