The following questions are from the Analysis of Financial Statements Reading (first reading on this module). You will find the methodology for answering these questions in the chapter reading attached in the file.
- Assume for the purposes of illustration that the organization began with no assets or liabilities. During the first week in operation, only two transactions occurred:
$150,000 worth of services rendered, and patients paid $50,000 of this amount. Thus, the balance sheet would show Cash of $ ___________. Patient Accounts Receivable of $_____________ and Net Assets of $____________. Hence, the increase in net assets since the last period was $____________.
2. Balance Sheet. The following are account balances as of September 30, 20X1 for Zachary Hospital. Prepare a balance sheet at September 30, 20X1 (hint: Net Assets will also need to be calculated).
Gross Plant, Property and Equipment $6,000,000
Cash $180,000
Net Accounts Receivable $650,000
Accrued Expenses $35,000
Supplies $100,000
Long-term Debt $5,000,000
Accounts Payable $130,000
Accumulated Depreciation $100,000
3. Statement of Operations. The following are annual account balances as of September 30, 20X1 for Vantage Hospital. Prepare a statement of operations for the 12-month period ending September 30, 20X1.
Net Patient Revenues $840,000
Transfer to Parent Corporation $10,000
Net Assets Released from Restriction for Operations $120,000
Depreciation Expense $50,000
Labor Expense $230,000
Interest Expense $12,000
Supply Expense $88,000
