Ass1w7

Healthcare Financial Management and Economics

Week 7 Assignment – Sundanese Medical Center

Assignment: Developing Financial Statements

All organizations, including those in the healthcare 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 this profitability and an organization’s overall financial status. For this Assignment, you practice developing three key financial statements using data from the Sundanese Medical Center.

Sundanese Medical Center

Sundanese Medical Center is a large western acute care and ambulatory facility serving an urban city population.

Givens (in '000s): Provision for bad debt expense $10,200 Cash $15,600 Patient revenues (net of contractuals) $188,000 Net accounts receivable $15,300 Ending balance, temporarily restricted net assets $13,700

Wages payable $9,800 Inventory $6,400 Long-term debt $42,000 Supply expense $21,000 Gross plant, property, and equipment $175,000 Net assets released from temporary restriction $3,300 Depreciation expense $10,000 General expense $36,000 Transfer to parent corporation ($3,300) Beginning balance, unrestricted net assets $160,600 Accounts payable $12,000 Beginning balance, temporarily restricted net assets $17,000

Interest expense $1,800 Labor expense $105,000 Accumulated depreciation $35,000 Long-term investments, restricted $64,800 Ending balance, unrestricted net assets $164,600

To prepare for this Assignment:

Examine the data from Sundanese Medical Center. Reflect on how you will use this data to develop a Balance Sheet, Profit and Loss Statement, and Cash Flow Statement. 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 located in the Learning Resources.

Your Assignment is due by Day 7 of Week 7.

Balance Sheet

Balance Sheet (in '000s)
For the Year Ended September 30, 2019
	9/30/19
Current assets
Cash and cash equivalents
Net accounts receivable
Inventory
Total current assets
Gross plant, property, and equipment
(less accumulated depreciation)
Net plant, property & equipment
Long-term investments
Total assets	$0
Current liabilities
Accounts payable
Wages payable
Total current liabilities
Long-term debt
Total liabilities
Net assets
Ending balance, unrestricted net assets
Ending balance, temporarily restricted net assets
Total net assets
Total liabilities and net assets	$0

Profit and Loss Statement

Profit and Loss Statement
Statement of Operations (in '000s)
For the Year Ended September 30, 2019
	9/30/19
Unrestricted revenues
Patient revenues (net of contractuals)
Provision for bad debt expense
Net patient revenues
Net assets released from temporary restriction
Total revenues
Operating expenses:
Labor expense
General expense
Supply expense
Depreciation expense
Interest expense
Total operating expenses
Excess of revenues over expenses
Transfer to parent corporation
Increase in unrestricted net assets	$0

Cash Flow Statement

Cash Flow Statement
Statement of Changes in Net Assets (in '000s)
For the Year Ended September 30, 2019
	9/30/19
Unrestricted net assets
Excess of revenues over expenses
Unrestricted contributions	0
Transfer to parent corporation
Change in unrestricted net assets	0
Temporarily restricted net assets
Net assets released from temporary restriction
Change in temporarily restricted net assets	0
Permanently restricted net assets
	0
Change in permanently restricted net assets	0
Increase in net assets	0
Beginning balance, net assets
Ending balance, total net assets	$0