Health Care Financial Management

  

The goal of this assignment is to use an organization’s financial information to create financial statements (balance sheet, statement of operations, and statement of changes in net assets).

In your eTextbook at the end of Chapter 2, locate Question 22 within “Review Questions and Problems.” Using the financial information provided for Sharpe Medical Center in the table, provide

• a      completed statement of operations,
• a      statement of changes in net assets, and
• a      balance sheet.

To conclude this assignment, you must also

• analyze      the organization’s financial position using the information contained      within the financial statements that you composed, and 
• create      a summary of the organization’s financial strength based on the financial      statements.

Your submission should be at least three pages, not counting the title or reference page. At a minimum, you must cite your eTextbook, but you may use other outside sources as well. Adhere to APA Style when constructing this assignment, including in-text citations and references for all sources that are used. Please note that no abstract is needed.

22. Multiple statements. The following are account balances (in thousands) at September 30, 20X1, for Sharpe Medical Center. Prepare (a) a balance sheet, (b) a statement of operations, and (c) a statement of changes in net assets for September 30, 20X1.

Givens (in ’000s)  

Inventory $5,000

Patient revenue (net of contractuals) $402,000

Gross plant, property, and equipment $450,000

Net accounts receivable $95,000

Ending balance, net assets with donor restrictions $24,000

Wages payable $8,600

Long‐term debt $320,000

Supply expense $44,000

Net assets released from donor restriction $9,000

Depreciation expense $54,000

General expense $100,000

Bad debt expense $6,500

Cash and cash equivalents $58,000

Transfer to parent corporation ($7,900)

Beginning balance, net assets without donor restrictions $250,000

Accounts payable $16,000

Beginning balance, net assets with donor restrictions $33,000

Interest expense $4,000

Labor expense $180,000

Accumulated depreciation $70,000

Long‐term investments $95,200

Ending balance, net assets without donor restrictions $264,600