1.Look at the Sample Hospital Audit report, in the Reading Assignments file, and determine the Net Worth of the hospital,how much is it?

2.

Did it change from one year to the next and if so by how

much?

3.

Can you determine why it changed?This is the really tough

part and you may not be able to answer this question yet this semester.

Balance Sheets September 30 2001 Assets 2000 Current assets: Cash and cash equivalents S 100 Assets limited as to usc 100 2,184,231 2,364,715 Accounts receivable, less allowance for uncollectible accounts ($3,903,000 in 2001 and $3,093,000 in 2000) 23,514,523 22,934 503 Other receivables 11,392,665 2,291,291 Inventories 3,401,183 3,089,711 Prepaid expenses 42,520 42,520 Total current assets 40,535,222 30,722,840 Assets limited as to use: Held by trustees under bond agreements 9,171,576 11,186,753 Board designated depreciation reserve funds 6,085,769 8,014.054 Board designated self-insurance funds 53,801 56,328 15,311,146 19,257,135 Less amount required to meet current obligations 2,184,231 2.364,715 13,126,915 16,892,420 Notes receivable from affiliates 13,748,308 15.753.829 Property and equipment: Land and improvements 10,303,086 9,264,860 Buildings and improvements 53,100,769 52,605,334 Equipment 58.245,781 56,880,977 Construction in progress 823,505 480,143 122,473,141 119,231,314 Less accumulated depreciation and amortization 63.524.213 58,280,980 Net property and equipment 58,948.928 60,950,334 Debt issuance costs, less accumulated amortization of $830,247 in 2001 and $696,182 3.307,493 3,501,558 in 2000 38,742 37,778 Other 3129,765,608 5 127,858,759 Total assetsSeptember 30 2001 2000 Liabilities and Net Assets Current liabilities: Payable to bank under line of credit $ 3,900,000 3,900,000 Accounts payable 9,181,204 4.793.212 Accrued interest payable 1,859,509 1,891,760 Accrued salaries and employee benefits 986,692 734,205 Other accrued expenses 522,089 769,715 Current maturities of long-term debt 1,741,569 1,655,319 Total current liabilities 18,191,063 13.744,211 Long-term debt, less current maturities 81,758, 789 83,385,747 Other long-term Liabilities 3,262,983 3,372,983 Net unrestricted assets 26,552,773 27,355,818 Total liabilities and net asse $ 129,765.608 5 127,858,759Fort Worth Osteopathic Hospital, Inc. Statements of Operations and Changes in Net Assets Year ended September 30 2001 2000 Revenue: Net patient service revenue $ 112,377,669 5 100,603,302 Other 2,189,985 3,842,820 Total revenue 114,567,654 104,446,122 Expenses: Salaries and wages 35,151,804 35,026,002 Employee benefits 6,864,796 6,556,849 Supplies and other 15,842,607 43,642,053 Provision for bad debts 13.257.027 13,326,541 Depreciation and amortization 5,247,851 5,558,868 Interest 5,480,526 5,513 054 Total expenses 1 11,844,611 109.623,367 Income (loss) from operations 2,723,043 (5,177,245) Unrealized losses on investments, net (1,029,852) (816.373) Gains on sale of fixed assets 298,935 469.120 Contribution income 625.829 151.047 Excess (deficit) of revenue over expenses 2,617,955 (5.373.451) Continued on next pageStatements of Cash Flows Year coded September 30 2001 2000 Operating Activities Decrease in net assets $ (803,045) S (8,973,451) Distributions to parent 3.421,000 3.600,000 Excess (deficit) of revenue over expenses 2,617,955 (5,373,451) Adjustments to reconcile excess (deficit) of revenue over expenses to net cash provided by (used in) operating activities: Depreciation and amortization 5,247,851 5,558,868 Amortization of original issue discount 134.065 134,066 Unrealized loss on investments 1,029,852 816,373 Provision for bad debts 13,257,027 13,326,541 Gains on sale of fixed assets (298,935) (469,120) Effect of changes in operating assets and liabilities: Accounts receivable (13,837,047) (18,979,859 Other receivables (9,101,374) 1,290,455 Inventories and prepaid expenses (311,472) (136,785) Accounts payable 4,387,992 (1,369,981) Accrued interest payable, accrued salaries and employee benefits, and other accrued expenses (28,354) 1,463,643 Other long-term liabilities (110,000) (636.432 Net cash provided by (used in) operating activities 2,987,560 (4.375,682) Investing Activities Acquisitions) disposals of property and equipment 3,246,445) 864 258 Proceeds on sale of fixed assets 298,935 459,120 Net decrease in assets limited as to use 2,916,137 10,579,155 Loans to affiliates (8,964,819) (2,544,536) Settlements of loans by affiliates 10.970,340 1,080 430 Net cash provided by investing activities 1.974,148 10.448.427 Financing Activities Payments of long term debt (1,540,708 (1.722,745) Decrease in short-term borrowings (1,000,000) Distributions to parent (3.421.000 (3.600,000) Net cash used in financing activities (4,961,708) (6,322,745) Net decrease in cash and cash equivalents (250.000) (ash and cash equivalents at beginning of year 100 250.100 Cash and cash equivalents at end of year 100