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):
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.
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.© BrainMass Inc. brainmass.com June 4, 2020, 5:19 am ad1c9bdddf
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 ...
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.