1. What was the total increase in assets between 2011 and 2012?

2. What was the hospital's 2012 net income (assume the hospital is NFP and as such does not pay out dividends? Also assume that the hospital had no charitable donations during 2012).

3. What kinds of debt and equity are used to fund the hospital's increase in assets?

4. It's great that the hospital has positive net income and that it's growing its asset base. What concerns do you have about the hospital's performance?

Below is the balance sheet for BestCare Hospital for December 31, 2011. You've been asked to forecast what the balance sheet will look like in 2012. Everything should look the same except the changes described below. After accounting for all the changes described below the balance sheet will balance (as it must always!) but some questions will only affect one account. Fill in the blanks. Use commas in your answer. For instance, please type 30,000 instead of 30000. The company decides to purchase a new building for $200. It finances the purchase by issuing $200 of new debt. Assume none of the new debt is due within a year and accumulated depreciation is the same in 2012 as it was in 2011. The hospital has more self-pay patients in 2012 and it takes: a long time to collect from these individuals. As a result: o The account related to services that have been provided but not paid (you identify which one it is) increases by $300. o With the flow of new cash coming in slowed by longer collection period, the hospital reduces its cash balance by $100. The CFO takes another step to deal with impending liquidity problems. She takes out a short-term loan of $30. (Note- I'm only telling you that the CFO took out a loan, not whether it was held as cash, used to pay suppliers or used to by PP&E so you can only record a change in the account associated with short-term loans) o The CFO also increases the hospital's use of trade credit and the associated balance sheet account increases by $80. (Note-trade credit refers to credit extended by a firm's suppliers. In other words, situations where a supplier will send the hospital supplies and allow the hospital to pay up to, say, 30 days after receiving the supplies.) The supply inventory and accrued expense accounts stay the same in 2012 as they were in 2011. December 31, 2012 December 31, 2011 Assets Current assets: Cash 2,737 Net accounts receivable 821 Supply inventory 387 Total Currents assets 3,945 Prop, plant & equipment (gross) 8,458 Accumulated depreciation (2,534) Net property plant & equipment 5,924 Total assets 9,869 Continue filling in the blanks from the question above Liabilities and Net Assets Accounts payable 2,145 Accrued expenses 929 Notes payable 382 Total current liabilities 3,456 Long-term debt 4,295 Total liabilities 7,751 Net assets (unrestricted) 2,118 Total liabilities and net assets 9,869