Q.1. Identify and explain the basic financial statements for investor-owned heal
ID: 2613407 • Letter: Q
Question
Q.1. Identify and explain the basic financial statements for investor-owned health care entities and not-for-profit entities.
Q.2.Balance sheet. The following are account balances as of September 30, 20X1, for Ray Hospital. Prepare a balance sheet at September 30, 20X1. (Hint: net assets will also need to be calculated.)
Given
Gross plant, property, and equipment
$70,000,000
Accrued expenses
$6,000,000
Cash
$8,000,000
Net accounts receivable
$15,500,000
Accounts payable
$7,000,000
Long-term debt
$45,000,000
Supplies
$3,000,000
Accumulated depreciation
$5,000,000
Q.3.Statement of cash flows. The following is a list of account balances for Hover Hospital on June 30, 20X1. Prepare a statement of cash flows as of June 30, 20X1.
Givens
Transfer to parent corporation
$40,000
Proceeds from sale of fixed equipment
$2,290,000
Principal payment on bonds payable
$780,000
Purchase of fixed equipment
$5,300,000
Beginning of cash balance
$6,500,000
Cash from operating activities
$3,900,000
Principal payment on notes payable
$6,500
Given
Gross plant, property, and equipment
$70,000,000
Accrued expenses
$6,000,000
Cash
$8,000,000
Net accounts receivable
$15,500,000
Accounts payable
$7,000,000
Long-term debt
$45,000,000
Supplies
$3,000,000
Accumulated depreciation
$5,000,000
Explanation / Answer
balance sheet at September 30, 20X1 Liabilities Amount Assets Amount Accrued Expenses 6,000,000.00 Cash 8,000,000.00 Accounts Payable 7,000,000.00 Gross Plant, Property and Equip 70,000,000 Long Term Debt 45,000,000.00 Less Accumulated Dep 5000,000 65,000,000.00 Equity(Balancing Figure) 33,500,000.00 Net Account Receivable 15,500,000.00 Supplies 3,000,000.00 91,500,000.00 91,500,000.00 Statement of Cash Flows under indirect Method Particulars Amount Amount Opening cash and Cash Equivalents 6,500,000.00 Cash Flow from Operating Activities 3,900,000.00 3,900,000.00 Cash Flow from Investing Activities Disposal of Fixed Equipment 2,290,000 Purchase of Fixed equipment -5,300,000 Cash Flow from Investing Activities (3,010,000.00) Cash Flow from Financing Activities Transfer to Parent Corporation (40,000.00) Redemption of Bond Payable (780,000.00) Redemption of Notes Payable (6,500.00) Cash Flow from Financing Activities (826,500.00) Closing cash and cash Equivalents(Bal fig) 6,563,500.00
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