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Examine the data from the medical center described in the document

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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).

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:

see the attachment

Balance Sheet (in ‘000s)For the Year Ended September 30, 20169/30/2016Current assetsCash and cash equivalentsNet accounts receivableInventoryTotal current assetsGross plant, property, and equipment(less accumulated depreciation)Net plant, property & equipmentLong-term investmentsTotal assets$0Current liabilitiesAccounts payableWages payableTotal current liabilitiesLong-term debtTotal liabilitiesNet assetsEnding balance, unrestricted net assetsEnding balance, temporarily restricted net assetsTotal net assetsTotal liabilities and net assets$0
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Profit and Loss StatementStatement of Operations (in ‘000s)For the Year Ended September 30, 20169/30/2016Unrestricted revenuesPatient revenues (net of contractuals)Provision for bad debt expenseNet patient revenuesNet assets released from temporary restrictionTotal revenuesOperating expenses:Labor expenseGeneral expenseSupply expenseDepreciation expenseInterest expenseTotal operating expensesExcess of revenues over expensesTransfer to parent corporationIncrease in unrestricted net assets$0
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