Capella University Ray Hospital Balance Worksheet
Question 1 -Balance Sheet
Using Excel, complete problem 11 on page 77 of Financial Management of Health Care Organizations. Post your workbook. Also, include a brief assessment of the financial position of Ray Hospital based on your completed balance sheet.
Remember to use citations and references as appropriate. You must follow current APA style and formatting guidelines.
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Financial statement element. Where in the financial statements does important explanatory information appear?
Financial statement element. In which financial statement would an entity identify its purchase of long-term investments?
Accounting methods. How does the accrual basis of accounting differ from the cash basis of accounting?
Balance sheet. The following are account balances as of September 30, 20X1, for Ray Hospital. Prepare a balance sheet at September 30, 20X1. (Hint: net assets will also need to be calculated.)
Givens
Gross plant, property, and equipment $70,000,000
Accrued expenses $6,000,000
Cash $8,000,000
Net accounts receivable $15,500,000
Accounts payable $7,000,000
Long-term debt $45,000,000
Supplies $3,000,000
Accumulated depreciation $5,000,000
Balance sheet. The following are account balances as of September 30, 20X1, for Stone Hospital. Prepare a balance sheet at September 30, 20X1. (Hint: net assets will also need to be calculated.)
Givens Gross plant, property, and equipment $65,000,000
Cash $6,000,000
Net accounts receivable$12,700,000
Accrued expenses $5,200,000
Inventory $5,300,000
Long-term debt $22,500,000
Accounts payable$8,300,000
Accumulated depreciation $28,500,000
Statement of operations. The following are annual account balances as of September 30, 20X1, for Snead Hospital. Prepare the portion of the statement of operations ending with operating income for the 12-month period ending September 30, 20X1.
Question 2 – Accrual-Basis and Cash-Basis Accounting
Discuss accrual-basis accounting and cash-basis accounting. What are the differences between the two?
If you were to start a new health care organization, which method would you use? Describe your organization (hospital, private practice, et cetera) and explain why you chose that method. Consider the long-term financial implications of your chosen method.
Remember to use citations and references as appropriate. You must follow APA sixth edition style and formatting guidelines.