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 an organizations profitability and overall financial status. For this Assignment, you practice developing three key financial statements using data from the Johnson Hospital

Johnson Hospital is a large Midwestern acute care and ambulatory facility serving an urban city population.

Givens (in '000s): Inventory $7,000 Patient revenues (net of contractual allowance) $220,000 Gross plant, property, and equipment $161,900 Net accounts receivable $65,000 Ending balance, temporarily restricted net assets $9,300 Wages payable $18,000 Long-term debt $104,000 Supply expense $18,000 Net assets released from temporary restriction $3,500 Depreciation expense $20,000 General expense $40,000 Provision for bad debt expense $12,000 Cash and cash equivalents $7,500 Transfer to parent corporation ($3,300) Beginning balance, unrestricted net assets $70,000 Accounts payable $12,000 Beginning balance, temporarily restricted net assets $12,800 Interest expense $6,500 Labor expense $77,600 Accumulated depreciation $90,000 Long-term investments $108,000 Ending balance, unrestricted net assets $116,100

Examine the data from Johnson Hospital. Reflect on how you will use this data to develop a Balance Sheet, Profit and Loss Statement, and Cash Flow Statement.

Complete a Balance Sheet, Profit and Loss Statement (Statement of Operations), and Cash Flow Statement (Statement of Changes in Net Assets)

Answer Sheets:

Balance Sheet

Johnson Hospital Balance Sheet (in '000s) For the Year Ended September 30, 2016 Current assets Cash and cash equivalents ______ Net accounts receivable ______ Inventory _____ Total current assets: ______

Gross plant, property, and equipment _______ (less accumulated depreciation) ________ Net plant, property & equipment _______ Long-term investments ________ Total assets: _________

Current liabilities Accounts payable _____ Wages payable ______ Total current liabilities _______

Long-term debt _____ Total liabilities ______

Net assets Ending balance, unrestricted net assets ______ Ending balance, temporarily restricted net assets _______ Total net assets ______

Total liabilities and net assets: ________

Statement of Operations

Johnson Hospital Statement of Operations (in '000s) For the Year Ended September 30, 2016 Unrestricted revenues: Patient revenues (net of contractual) ______ Provision for bad debt expense ______ Net patient revenues ______ Net assets released from temporary restriction ______ Total revenues: _____

Operating expenses: Labor expense _____ General expense _____ Supply expense ______

Depreciation expense: Interest expense ____ Total operating expenses ______

Excess of revenues over expenses _____ Transfer to parent corporation ______ Increase in unrestricted net assets: ______

Changes in Net Assets

Johnson Hospital Statement of Changes in Net Assets (in '000s) For the Year Ended September 30, 2016 Unrestricted net assets: Excess of revenues over expenses _______ Unrestricted contributions ________ Transfer to parent corporation ______ Change in unrestricted net assets _______

Temporarily restricted net assets: Net assets released from temporary restriction _______ Change in temporarily restricted net assets _______

Permanently restricted net assets: Change in permanently restricted net assets ______ Increase in net assets ______ Beginning balance, net assets ______ Ending balance, total net assets: ______