Week 7 Assignment – Putman 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 Putman Medical Center.
Putman Medical Center
Putman Medical Center is a large mid-western acute care and ambulatory facility serving an urban city population.
Givens (in ‘000s): Insurance expense $70,000 Cash $23,000 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 $191,700 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 $21,000 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 $150,400 Ending balance, unrestricted net assets $426,000
To prepare for this Assignment:
Examine the data from Putman 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.