ASSIGNMENT 2/6175
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Assignment2.docxHSA 6175 FINANCIAL MANAGEMENT OF HEALTH SYSTEMS
ASSIGNMENT 2
1. Given below is a list of account balances for Dade Hospital as of December 31, 2016. Prepare a balance sheet as of December 31, 2016, in proper form. (Hint: You will need to compute the net assets account. Assume that all net assets at the beginning of the year are unrestricted.)
Account |
|
Balance |
Gross plant & equipment |
|
$6,000,000 |
Accounts payable |
|
130,000 |
Inventories |
|
100,000 |
Other current liabilities |
|
70,000 |
Net accounts receivable |
|
650,000 |
Accrued expenses |
|
100,000 |
Accumulated depreciation |
|
200,000 |
Long-term debt |
|
5,000,000 |
Cash |
|
210,000 |
2. Below is a list of accounts for Dade Hospital for December 2016 (annual amounts). Prepare a statement of operations for 2016 in good form.
|
Account |
|
Amount |
|
Administrative expenses |
|
$80,000 |
|
Net assets released from temporarily restricted accounts for operations |
|
120,000 |
|
Labor expense |
|
260,000 |
|
Interest expense |
|
12,000 |
|
Net patient service revenue |
|
840,000 |
|
Supply expense |
|
88,000 |
|
Transfer to parent corporation |
|
10,000 |
|
Bad debt expense |
|
40,000 |
|
Depreciation expense |
|
50,000 |
Rubrics:
Submissions of all problems: 50%
Problem 1 25%
Problem 2 25%
