Chapter 4 UNDERSTANDING HEALTHCARE FINANCIAL MANAGEMENT, 6th ed Problem 4.3 The follow provides financial statement information four not-for-profit clinics. Fill in the missing values noted in yellow. December 31, 2014 Assets $80,000 $100,000 $150,000 Liabilities $50,000 $75,000 Equity $60,000 $45,000 $90,000 December 31, 2015 Assets $130,000 $180,000 Liabilities $55,000 $62,000 $80,000 Equity $45,000 $110,000 $145,000 During 2015 Total Revenues $400,000 $500,000 Total Expenses $330,000 $360,000

Problem 4.4 The following are selected account balances for Warren Clinic 2015 as of December 31, 2015, in alphabetical order. Create Warren Clinic's balance sheet. Reorder the data in proper format using the template provided. Fill in all blue shaded areas. Use Excel functions for all calculations. Accounts payable $20,000 Accounts receivable, net 60,000 Assets: Cash 30,000 Equity 230,000 Long-term debt 120,000 Total Current Assets Long-term investments 100,000 Net property and equipment 150,000 Other assets 40,000 Other long-term liabilities 10,000 Total Assets Liabilities and Equity: Total Current Liabilities Total Long-term Liabilities Total Liabilities

Problem 4.6 Consider this balance sheet: Assets Current Assets: Cash $105,737 Short-term investments 200,000 Net patient accounts receivable 215,600 Supplies 87,655 Total current assets $608,992 Property and equipment $2,250,000 Less Accumulated depreciation 356,000 Net Property and equipment $1,894,000 Total assets $2,502,992 Liabilities and Shareholders' Equity: Current Liabilities: Accounts payable $72,250 Accrued expenses 192,900 Notes payable 180,000 Total current liabilities $445,150 Long-term debt 1,700,000 Total liabilities $2,145,150 Shareholders' Equity: Common stock, $10 par value $100,000 Retained earnings 257,842 Total shareholders' equity $357,842 Total liabilities and equity $2,502,992 a. How does this balance sheet differ from the ones presented in Exhibit 4.1 and Problem 4.5? b. What is Green Valley's net working capital for 2015? Current assets Current liabilities Net working capital c. What is Green Valley's debt ratio (show the formula used to calculate)? How does it compare with the debt ratios for Sunnyvale and BestCare?

Chapter 4 UNDERSTANDING HEALTHCARE FINANCIAL MANAGEMENT, Problem 4.3 The follow provides financial statement information four not-for-profit clinics. Fill in the missing values noted in yellow. December 31, 2014 Assets $ Liabilities $ Equity 80,000 $ 100,000 50,000 $ 60,000 $ 150,000 $ $ 75,000 45,000 $ 90,000 December 31, 2015 Assets Liabilities $ Equity $ $ 130,000 $ 180,000 55,000 $ 62,000 $ 80,000 45,000 $ 110,000 $ 145,000 During 2015 Total Revenues $ 400,000 Total Expenses $ 330,000 $ 500,000 $ 360,000 FINANCIAL MANAGEMENT, 6th ed g values noted in yellow. Chapter 4 UNDERSTANDING HEALTHCARE FINANCIAL MANAGEMENT, 6th ed Problem 4.4 The following are selected account balances for Warren Clinic 2015 as of December 31, 2015, in alphabetical order. Create Warr Reorder the data in proper format using the template provided. Fill in all blue shaded areas. Use Excel functions for all calculations. Accounts payable Accounts receivable, net Cash Equity Long-term debt Long-term investments Net property and equipment Other assets Other long-term liabilities $ 20,000 60,000 30,000 230,000 120,000 100,000 150,000 40,000 10,000 Assets: Total Current Assets Total Assets Liabilities and Equity: Total Current Liabilities Total Long-term Liabilities Total Liabilities ANAGEMENT, 6th ed phabetical order. Create Warren Clinic's balance sheet. Chapter 4 UNDERSTANDING HEALTHCARE FINANCIAL MANAGEMENT, 6th ed Problem 4.6 Consider this balance sheet: Assets Current Assets: Cash Short-term investments Net patient accounts receivable Supplies Total current assets Property and equipment Less Accumulated depreciation Net Property and equipment Total assets $ $ 105,737 200,000 215,600 87,655 608,992 2,250,000 356,000 1,894,000 2,502,992 Liabilities and Shareholders' Equity: Current Liabilities: Accounts payable $ Accrued expenses Notes payable Total current liabilities $ Long-term debt Total liabilities $ 72,250 192,900 180,000 445,150 1,700,000 2,145,150 Shareholders' Equity: Common stock, $10 par value Retained earnings Total shareholders' equity Total liabilities and equity $ $ $ $ $ 100,000 257,842 357,842 $ 2,502,992 a. How does this balance sheet differ from the ones presented in Exhibit 4.1 and Problem 4.5? b. What is Green Valley's net working capital for 2015? Current assets Current liabilities Net working capital c. What is Green Valley's debt ratio (show the formula used to calculate)? How does it compare with the debt ratios for Sunnyvale and BestCare? L MANAGEMENT, 6th ed