Assignment Prompt & Instructions
[>Accounting homework help](https://www.sweetstudy.com/fields/business-finance-accounting)
**files (6)**
– ## Week7AssignmentInstructions-HealthcareFinance.docx
– ## Week7AssignmentLearningResources-HealthcareFinance.docx
– ## USW1_MMHA_6400_Week07_FinancialStatements.pdf
– ## USW1_MMHA_6400_Week07_financialStatementExcelTemplate.xlsx
– ## WeekSevenAssignment2.docx
– Chapter07UHFM8thEdPPT-1.pptx
**## Week7AssignmentInstructions-HealthcareFinance.docx**
**Week 7 Assignment**
**Healthcare Finance**
**Developing Financial Statement**
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 a medical center.
**To prepare for this Assignment:**
· Review the Week 7 Assignment document provided to you by the instructor in the
[Announcements](https://waldenu.instructure.com/courses/226605/announcements). 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). Refer to the course text for additional guidance.
· Download the Week 7 Financial Statement Excel Template
**Submit** the following:
· 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.”
**## Week7AssignmentLearningResources-HealthcareFinance.docx**
**Week 7 Learning Resources**
**Healthcare Finance**
**Required Readings**
· Pink, G. H., & Song, P. H. (2020).
_Gapinski’s understanding healthcare financial management_ (8th ed.). Health Administration Press.
· Chapter 13, “Financial Condition Analysis” (pp. 507–548)
· Crail, C., & Main, K. (2023, June 5).
[_Generally accepted accounting principles (GAAP) guide_ Links to an external site.](https://www.forbes.com/advisor/business/generally-accepted-accounting-principles-gaap-guide/). Forbes. https://www.forbes.com/advisor/business/generally-accepted-accounting-principles-gaap-guide/
· Meiryani, M., Soepriyanto, G., Wahyuningtias, D., & Dewi, K. (2020).
[Accounting perspective in hospitalLinks to an external site.](https://doi.org/10.3991/ijoe.v16i08.14721).
_International Journal of Online & Biomedical Engineering_,
_16_(8), 114–123. https://doi.org/10.3991/ijoe.v16i08.14721
· Stahl, M. J. (2006).
[Financial statementsLinks to an external site.](https://go.openathens.net/redirector/waldenu.edu?url=https://sk.sagepub.com/reference/healthcaremanagement/n305.xml). In
_Encyclopedia of Health Care Management_. Sage. https://doi.org/10.4135/9781412950602
·
**Document:** [Financial Statements (PDF)](https://waldenu.instructure.com/courses/226605/files/19547054?wrap=1) [Download Financial Statements (PDF)](https://waldenu.instructure.com/courses/226605/files/19547054/download?download_frd=1)
·
**Document:** [Week 7 Financial Statement Excel Template (Excel spreadsheet)](https://waldenu.instructure.com/courses/226605/files/19547022?wrap=1)
**Required Media**
Walden University, LLC. (2024h). Financial reporting in healthcare [Video]. Walden University Canvas. https://waldenu.instructure.com
**## USW1_MMHA_6400_Week07_FinancialStatements.pdf**
© 2022 Walden University, LLC Page 1 of 2
Financial Statements
There are four basic financial statements. These statements, and any supplemental
materials, are the final products of financial accounting. Their preparation follows
prescribed rules and regulations, and you will notice many similarities in the actual
statements when you look at them during this course.
Let’s take a close look at the four basic financial statements:
1. The income statement—This statement must be prepared first. It shows all the
revenues earned, and the expenses incurred, during a specific period of time, such as a
quarter or a year. The expenses are subtracted from the revenues to yield net income,
which is often called “the bottom line” (as it used to be the last line on the income
statement). Today, you often will see earnings per share information on the income
statement following the net income. Other names for the income statement include
statement of earnings, statement of operations, profit and loss statement, statement of
revenue less expenses, and consolidated statement of income.
2. The statement of stockholders’ equity—This statement is prepared next, as it
includes the net income calculated on the income statement. This statement reflects the
changes that have taken place to the equity of the company over the same period of
time as the income statement. This statement might also be called the statement of
stockholders’ equity and retained earnings. If there are no changes in the shares of
stock issued by the company, the statement might be called a statement of retained
earnings. The retained earnings of a company represent the earnings that were not paid
out as dividends. If the financial statements were prepared for an entity that includes
more than one company or division, this statement would be called a consolidated
statement of stockholders’ equity.
3. The balance sheet—This statement is prepared after the statement of
stockholders’ equity, as it contains the equity position of the company. The name
“balance sheet” was derived from the accounting equation “assets = liabilities + equity.”
The equation must be in balance. All assets must equal the sum of all liabilities and
equity. The statement gives a snapshot of the company on a specific date, such as
December 31 of a particular year. Other names for the balance sheet are statement of
financial position, consolidated balance sheet, or consolidated statement of financial
position.
4. The cash flow statement—The last statement prepared is the cash flow
statement. This statement uses information from all the other statements. Its purpose is
to show the inflows and outflows of cash during the same time period as shown on the
income statement and the statement of stockholders’ equity. It will reflect cash provided
by the operations of the business, investment activities, and financing activities.
As mentioned above, the balance sheet is a reflection of the accounting equation:
assets = liabilities + equity. Assets are those items that a company owns, such as cash,
© 2022 Walden University, LLC Page 2 of 2
accounts receivable, furniture and fixtures, and inventory. Liabilities show what a
company owes to others, such as accounts payable, loans payable, and mortgages.
The equity section contains information on the company’s stock as well as the earnings
retained by the company.
**## USW1_MMHA_6400_Week07_financialStatementExcelTemplate.xlsx**
## Balance Sheet
| | |
| — | — |
| Balance Sheet (in '000s) |
| For the Year Ended September 30, 2023 |
| | 9/30/23 |
| 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, 2023 |
| | 9/30/23 |
| 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, 2023 |
| | 9/30/23 |
| 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 |
**## WeekSevenAssignment2.docx**
## Healthcare Financial Management and Economics Week 7 Assignment – NorthWest 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 NorthWest Medical Center.
## NorthWest Medical Center
North Medical Center is a large NorthWestern acute care and ambulatory facility serving an urban city population.
| | |
| — | — |
| **Givens (in '000s):** | |
| Insurance expense | $70,000 |
| Cash | $20,000 |
| Patient revenues (net of contractuals) | $614,000 |
| Net accounts receivable | $25,000 |
| Ending balance, temporarily restricted net assets | $8,700 |
| Wages payable | $9,100 |
| Prepaid expense | $1,100 |
| Long-term debt | $189,700 |
| Supply expense | $66,000 |
| Gross plant, property, and equipment | $556,000 |
| Net assets released from temporary restriction | $8,000 |
| Depreciation expense | $10,000 |
| General expense | $95,000 |
| Transfer to parent corporation | ($8,000) |
| Beginning balance, unrestricted net assets | $203,400 |
| Accounts payable | $18,000 |
| Beginning balance, temporarily restricted net assets | $16,700 |
| Provision for bad debt expense | $5,400 |
| Labor expense | $145,000 |
| Accumulated depreciation | $99,000 |
| Long-term investments | $148,400 |
| Ending balance, unrestricted net assets | $426,000 |
## To prepare for this Assignment:
Examine the data from NorthWest 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.**
**Chapter07UHFM8thEdPPT-1.pptx**
This file is too large to display. [View in new window](https://www.sweetstudy.com/files/chapter07uhfm8thedppt-1-pptx)
**Chapter07UHFM8thEdPPT-1.pptx**
This file is too large to display. [View in new window](https://www.sweetstudy.com/files/chapter07uhfm8thedppt-1-pptx)
**## Week7AssignmentInstructions-HealthcareFinance.docx**
**Week 7 Assignment**
**Healthcare Finance**
**Developing Financial Statement**
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 a medical center.
**To prepare for this Assignment:**
· Review the Week 7 Assignment document provided to you by the instructor in the
[Announcements](https://waldenu.instructure.com/courses/226605/announcements). 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). Refer to the course text for additional guidance.
· Download the Week 7 Financial Statement Excel Template
**Submit** the following:
· 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.”
**## Week7AssignmentLearningResources-HealthcareFinance.docx**
**Week 7 Learning Resources**
**Healthcare Finance**
**Required Readings**
· Pink, G. H., & Song, P. H. (2020).
_Gapinski’s understanding healthcare financial management_ (8th ed.). Health Administration Press.
· Chapter 13, “Financial Condition Analysis” (pp. 507–548)
· Crail, C., & Main, K. (2023, June 5).
[_Generally accepted accounting principles (GAAP) guide_ Links to an external site.](https://www.forbes.com/advisor/business/generally-accepted-accounting-principles-gaap-guide/). Forbes. https://www.forbes.com/advisor/business/generally-accepted-accounting-principles-gaap-guide/
· Meiryani, M., Soepriyanto, G., Wahyuningtias, D., & Dewi, K. (2020).
[Accounting perspective in hospitalLinks to an external site.](https://doi.org/10.3991/ijoe.v16i08.14721).
_International Journal of Online & Biomedical Engineering_,
_16_(8), 114–123. https://doi.org/10.3991/ijoe.v16i08.14721
· Stahl, M. J. (2006).
[Financial statementsLinks to an external site.](https://go.openathens.net/redirector/waldenu.edu?url=https://sk.sagepub.com/reference/healthcaremanagement/n305.xml). In
_Encyclopedia of Health Care Management_. Sage. https://doi.org/10.4135/9781412950602
·
**Document:** [Financial Statements (PDF)](https://waldenu.instructure.com/courses/226605/files/19547054?wrap=1) [Download Financial Statements (PDF)](https://waldenu.instructure.com/courses/226605/files/19547054/download?download_frd=1)
·
**Document:** [Week 7 Financial Statement Excel Template (Excel spreadsheet)](https://waldenu.instructure.com/courses/226605/files/19547022?wrap=1)
**Required Media**
Walden University, LLC. (2024h). Financial reporting in healthcare [Video]. Walden University Canvas. https://waldenu.instructure.com
**## USW1_MMHA_6400_Week07_FinancialStatements.pdf**
© 2022 Walden University, LLC Page 1 of 2
Financial Statements
There are four basic financial statements. These statements, and any supplemental
materials, are the final products of financial accounting. Their preparation follows
prescribed rules and regulations, and you will notice many similarities in the actual
statements when you look at them during this course.
Let’s take a close look at the four basic financial statements:
1. The income statement—This statement must be prepared first. It shows all the
revenues earned, and the expenses incurred, during a specific period of time, such as a
quarter or a year. The expenses are subtracted from the revenues to yield net income,
which is often called “the bottom line” (as it used to be the last line on the income
statement). Today, you often will see earnings per share information on the income
statement following the net income. Other names for the income statement include
statement of earnings, statement of operations, profit and loss statement, statement of
revenue less expenses, and consolidated statement of income.
2. The statement of stockholders’ equity—This statement is prepared next, as it
includes the net income calculated on the income statement. This statement reflects the
changes that have taken place to the equity of the company over the same period of
time as the income statement. This statement might also be called the statement of
stockholders’ equity and retained earnings. If there are no changes in the shares of
stock issued by the company, the statement might be called a statement of retained
earnings. The retained earnings of a company represent the earnings that were not paid
out as dividends. If the financial statements were prepared for an entity that includes
more than one company or division, this statement would be called a consolidated
statement of stockholders’ equity.
3. The balance sheet—This statement is prepared after the statement of
stockholders’ equity, as it contains the equity position of the company. The name
“balance sheet” was derived from the accounting equation “assets = liabilities + equity.”
The equation must be in balance. All assets must equal the sum of all liabilities and
equity. The statement gives a snapshot of the company on a specific date, such as
December 31 of a particular year. Other names for the balance sheet are statement of
financial position, consolidated balance sheet, or consolidated statement of financial
position.
4. The cash flow statement—The last statement prepared is the cash flow
statement. This statement uses information from all the other statements. Its purpose is
to show the inflows and outflows of cash during the same time period as shown on the
income statement and the statement of stockholders’ equity. It will reflect cash provided
by the operations of the business, investment activities, and financing activities.
As mentioned above, the balance sheet is a reflection of the accounting equation:
assets = liabilities + equity. Assets are those items that a company owns, such as cash,
© 2022 Walden University, LLC Page 2 of 2
accounts receivable, furniture and fixtures, and inventory. Liabilities show what a
company owes to others, such as accounts payable, loans payable, and mortgages.
The equity section contains information on the company’s stock as well as the earnings
retained by the company.
**## USW1_MMHA_6400_Week07_financialStatementExcelTemplate.xlsx**
## Balance Sheet
| | |
| — | — |
| Balance Sheet (in '000s) |
| For the Year Ended September 30, 2023 |
| | 9/30/23 |
| 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, 2023 |
| | 9/30/23 |
| 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, 2023 |
| | 9/30/23 |
| 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 |
**## WeekSevenAssignment2.docx**
## Healthcare Financial Management and Economics Week 7 Assignment – NorthWest 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 NorthWest Medical Center.
## NorthWest Medical Center
North Medical Center is a large NorthWestern acute care and ambulatory facility serving an urban city population.
| | |
| — | — |
| **Givens (in '000s):** | |
| Insurance expense | $70,000 |
| Cash | $20,000 |
| Patient revenues (net of contractuals) | $614,000 |
| Net accounts receivable | $25,000 |
| Ending balance, temporarily restricted net assets | $8,700 |
| Wages payable | $9,100 |
| Prepaid expense | $1,100 |
| Long-term debt | $189,700 |
| Supply expense | $66,000 |
| Gross plant, property, and equipment | $556,000 |
| Net assets released from temporary restriction | $8,000 |
| Depreciation expense | $10,000 |
| General expense | $95,000 |
| Transfer to parent corporation | ($8,000) |
| Beginning balance, unrestricted net assets | $203,400 |
| Accounts payable | $18,000 |
| Beginning balance, temporarily restricted net assets | $16,700 |
| Provision for bad debt expense | $5,400 |
| Labor expense | $145,000 |
| Accumulated depreciation | $99,000 |
| Long-term investments | $148,400 |
| Ending balance, unrestricted net assets | $426,000 |
## To prepare for this Assignment:
Examine the data from NorthWest 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.**
**Chapter07UHFM8thEdPPT-1.pptx**
This file is too large to display. [View in new window](https://www.sweetstudy.com/files/chapter07uhfm8thedppt-1-pptx)
**## Week7AssignmentInstructions-HealthcareFinance.docx**
**Week 7 Assignment**
**Healthcare Finance**
**Developing Financial Statement**
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 a medical center.
**To prepare for this Assignment:**
· Review the Week 7 Assignment document provided to you by the instructor in the
[Announcements](https://waldenu.instructure.com/courses/226605/announcements). 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). Refer to the course text for additional guidance.
· Download the Week 7 Financial Statement Excel Template
**Submit** the following:
· 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.”
**## Week7AssignmentLearningResources-HealthcareFinance.docx**
**Week 7 Learning Resources**
**Healthcare Finance**
**Required Readings**
· Pink, G. H., & Song, P. H. (2020).
_Gapinski’s understanding healthcare financial management_ (8th ed.). Health Administration Press.
· Chapter 13, “Financial Condition Analysis” (pp. 507–548)
· Crail, C., & Main, K. (2023, June 5).
[_Generally accepted accounting principles (GAAP) guide_ Links to an external site.](https://www.forbes.com/advisor/business/generally-accepted-accounting-principles-gaap-guide/). Forbes. https://www.forbes.com/advisor/business/generally-accepted-accounting-principles-gaap-guide/
· Meiryani, M., Soepriyanto, G., Wahyuningtias, D., & Dewi, K. (2020).
[Accounting perspective in hospitalLinks to an external site.](https://doi.org/10.3991/ijoe.v16i08.14721).
_International Journal of Online & Biomedical Engineering_,
_16_(8), 114–123. https://doi.org/10.3991/ijoe.v16i08.14721
· Stahl, M. J. (2006).
[Financial statementsLinks to an external site.](https://go.openathens.net/redirector/waldenu.edu?url=https://sk.sagepub.com/reference/healthcaremanagement/n305.xml). In
_Encyclopedia of Health Care Management_. Sage. https://doi.org/10.4135/9781412950602
·
**Document:** [Financial Statements (PDF)](https://waldenu.instructure.com/courses/226605/files/19547054?wrap=1) [Download Financial Statements (PDF)](https://waldenu.instructure.com/courses/226605/files/19547054/download?download_frd=1)
·
**Document:** [Week 7 Financial Statement Excel Template (Excel spreadsheet)](https://waldenu.instructure.com/courses/226605/files/19547022?wrap=1)
**Required Media**
Walden University, LLC. (2024h). Financial reporting in healthcare [Video]. Walden University Canvas. https://waldenu.instructure.com
**## USW1_MMHA_6400_Week07_FinancialStatements.pdf**
© 2022 Walden University, LLC Page 1 of 2
Financial Statements
There are four basic financial statements. These statements, and any supplemental
materials, are the final products of financial accounting. Their preparation follows
prescribed rules and regulations, and you will notice many similarities in the actual
statements when you look at them during this course.
Let’s take a close look at the four basic financial statements:
1. The income statement—This statement must be prepared first. It shows all the
revenues earned, and the expenses incurred, during a specific period of time, such as a
quarter or a year. The expenses are subtracted from the revenues to yield net income,
which is often called “the bottom line” (as it used to be the last line on the income
statement). Today, you often will see earnings per share information on the income
statement following the net income. Other names for the income statement include
statement of earnings, statement of operations, profit and loss statement, statement of
revenue less expenses, and consolidated statement of income.
2. The statement of stockholders’ equity—This statement is prepared next, as it
includes the net income calculated on the income statement. This statement reflects the
changes that have taken place to the equity of the company over the same period of
time as the income statement. This statement might also be called the statement of
stockholders’ equity and retained earnings. If there are no changes in the shares of
stock issued by the company, the statement might be called a statement of retained
earnings. The retained earnings of a company represent the earnings that were not paid
out as dividends. If the financial statements were prepared for an entity that includes
more than one company or division, this statement would be called a consolidated
statement of stockholders’ equity.
3. The balance sheet—This statement is prepared after the statement of
stockholders’ equity, as it contains the equity position of the company. The name
“balance sheet” was derived from the accounting equation “assets = liabilities + equity.”
The equation must be in balance. All assets must equal the sum of all liabilities and
equity. The statement gives a snapshot of the company on a specific date, such as
December 31 of a particular year. Other names for the balance sheet are statement of
financial position, consolidated balance sheet, or consolidated statement of financial
position.
4. The cash flow statement—The last statement prepared is the cash flow
statement. This statement uses information from all the other statements. Its purpose is
to show the inflows and outflows of cash during the same time period as shown on the
income statement and the statement of stockholders’ equity. It will reflect cash provided
by the operations of the business, investment activities, and financing activities.
As mentioned above, the balance sheet is a reflection of the accounting equation:
assets = liabilities + equity. Assets are those items that a company owns, such as cash,
© 2022 Walden University, LLC Page 2 of 2
accounts receivable, furniture and fixtures, and inventory. Liabilities show what a
company owes to others, such as accounts payable, loans payable, and mortgages.
The equity section contains information on the company’s stock as well as the earnings
retained by the company.
**## USW1_MMHA_6400_Week07_financialStatementExcelTemplate.xlsx**
## Balance Sheet
| | |
| — | — |
| Balance Sheet (in '000s) |
| For the Year Ended September 30, 2023 |
| | 9/30/23 |
| 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, 2023 |
| | 9/30/23 |
| 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, 2023 |
| | 9/30/23 |
| 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 |
**## WeekSevenAssignment2.docx**
## Healthcare Financial Management and Economics Week 7 Assignment – NorthWest 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 NorthWest Medical Center.
## NorthWest Medical Center
North Medical Center is a large NorthWestern acute care and ambulatory facility serving an urban city population.
| | |
| — | — |
| **Givens (in '000s):** | |
| Insurance expense | $70,000 |
| Cash | $20,000 |
| Patient revenues (net of contractuals) | $614,000 |
| Net accounts receivable | $25,000 |
| Ending balance, temporarily restricted net assets | $8,700 |
| Wages payable | $9,100 |
| Prepaid expense | $1,100 |
| Long-term debt | $189,700 |
| Supply expense | $66,000 |
| Gross plant, property, and equipment | $556,000 |
| Net assets released from temporary restriction | $8,000 |
| Depreciation expense | $10,000 |
| General expense | $95,000 |
| Transfer to parent corporation | ($8,000) |
| Beginning balance, unrestricted net assets | $203,400 |
| Accounts payable | $18,000 |
| Beginning balance, temporarily restricted net assets | $16,700 |
| Provision for bad debt expense | $5,400 |
| Labor expense | $145,000 |
| Accumulated depreciation | $99,000 |
| Long-term investments | $148,400 |
| Ending balance, unrestricted net assets | $426,000 |
## To prepare for this Assignment:
Examine the data from NorthWest 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.**
**Chapter07UHFM8thEdPPT-1.pptx**
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