Reference no: EM131460622

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.

Givens (in '000s):
Inventory	$4,000
Patient revenues (net of contractual allowance)	$302,000
Gross plant, property, and equipment	$375,000
Net accounts receivable	$85,000
Ending balance, temporarily restricted net assets	$6,000
Wages payable	$6,600
Long-term debt	$218,400
Supply expense	$34,000
Net assets released from temporary restriction	$7,000
Depreciation expense	$44,000
General expense	$95,000
Provision for bad debt expense	$4,500
Cash and cash equivalents	$18,000
Transfer to parent corporation	($3,900)
Beginning balance, unrestricted net assets	$239,400
Accounts payable	$11,000
Beginning balance, temporarily restricted net assets	$13,000
Interest expense	$6,000
Labor expense	$123,000
Accumulated depreciation	$22,000
Long-term investments	$20,000
Ending balance, unrestricted net assets	$238,000

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".