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    Louis Medical Center Financial Statements

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    Healthcare Financial Management and Economics

    — Louis Medical Center

    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 an organization's profitability and overall financial status. For this Assignment, you practice developing three key financial statements using data from the Louis Medical Center.

    Louis Medical Center

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

    Givens (in '000s):
    Inventory $7,000
    Patient revenues (net of contractual allowance) $220,000
    Gross plant, property, and equipment $161,900
    Net accounts receivable $65,000
    Ending balance, temporarily restricted net assets $9,300
    Wages payable $18,000
    Long-term debt $104,000
    Supply expense $18,000
    Net assets released from temporary restriction $3,500
    Depreciation expense $20,000
    General expense $40,000
    Provision for bad debt expense $12,000
    Cash and cash equivalents $7,500
    Transfer to parent corporation ($3,300)
    Beginning balance, unrestricted net assets $70,000
    Accounts payable $12,000
    Beginning balance, temporarily restricted net assets $12,800
    Interest expense $6,500
    Labor expense $77,600
    Accumulated depreciation $90,000
    Long-term investments $108,000
    Ending balance, unrestricted net assets $116,100

    To prepare for this Assignment:

    Examine the data from Louis 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.

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    https://brainmass.com/business/business-management/louis-medical-center-financial-statements-616446

    Attachments

    Solution Preview

    I have showed in the attached excel sheet how the sheets should be filled out. The excel sheet is to be used as a guide to compare your answers with, as you complete your problems.

    Using the problem information as a guideline, the balance sheet can be completed. Again, I have demonstrated on the attached excel sheet. The information is derived, line by line, from the problem data. This allows us to arrive at the total assets and total liabilities. As further information for your ...

    Solution Summary

    This solution shows how to complete the excel worksheet for Louis Medical Center. A brief description is also provided as to the particular points of interest. Healthcare financial statement resources are also included, for student expansion.

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