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Florida Hospital Apopka, a not-for profit organization, began 2018 with the following account balances on January 1: Cash Accounts receivable Allowance for doubtful accounts Supplies
Florida Hospital Apopka, a not-for profit organization, began 2018 with the following account balances on January 1: Cash Accounts receivable Allowance for doubtful accounts Supplies inventory Property and Equipment Accumulated depreciation Accounts payable Notes payable (short-term bank loans) Net assets $70,000 245,000 18,000 24,000 1,500,000 300,000 21,000 500,000 1,000,000 During 2018, the accounting clerk recorded the following transactions (Florida Hospital Apopka's year end is December 31): Transaction Number Event Amount Billed patients for services rendered $1,700,000 12,000 712,000 683,000 150,000 250,000 1,124,000 44,000 2.Purchased medical supplies on credit Emplovee salaries earned during 2018 3. Received a bank loan (short-term) Cash collections on patient billings Estimated bad debts for 2018 billings 8. 10 a. Prepare a properly formatted 2018 balance sheet and income statement for the hospital using the beginning account balances and incorporating the effects of each transaction. b. What is Florida Hospital Apopka's net working capital for 2018? c. What is Florida Hospital Apopka's debt ratio? d. How does Florida Hospital Apopka's debt ratio compare with the debt ratio for Sunnyvale (textbook, Exhibit 4.1)
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