In the course, we understood that there are certain key financial reports for the healthcare services
organization. The Balance Sheet, Operating Statement (Income Statement; Revenue/Expense Statement), and
the Cash Flow Schedule each represent a certain perspective of the organization's financial position within its
fiscal period. At the end of each year these three financial reports make up the year-end financial statements,
and following the audit by certified public accountants (CPA's) of the organization's financial transactions and
recordings, they are issued with any required adjustments, qualifiers, and notes in the certified financial report
of the auditing CPA firm.
At the beginning of each year (fiscal period), the organization applies an operating budget that includes
projections within the Balance Sheet, Operating Statement (Income Statement; Revenue/Expense Statement),

and the Cash Flow Schedule. The budget provides a guide for volume and financial expectations in the day-to-
day operations of the organization, and commonly, the budgeted Balance Sheet, Operating Statement (Income

Statement; Revenue/Expense Statement), and the Cash Flow Schedule are compared on a monthly-basis with
the Balance Sheet, Operating Statement (Income Statement; Revenue/Expense Statement), and the Cash Flow
Schedule that reflect the actual experience of the organization - to compare the projected and actual results,
and determine variations, understand the reasons for the variations and take any management action to make
operational improvements.
These three financial reports are inter-related, in that a change in one can affect the others. Increased receipts
shown on the Cash Flow Schedule, for example, can lessen accounts receivable (patient revenue) on the
Operating Statement and add to the Cash Asset in the Balance Sheet.
Question
Explain the relationship between the three reports - the Balance Sheet, Statement of Operations (Income
Statement; Revenue/Expense Statement), and the Cash Flow Schedule. Provide at least three (3) examples
of how a change in one of the reports effects the other two reports, and indicate the financial categories of
assets, liabilities, revenue, expenses, receipts, and/or disbursements that are affected by the changes, as
well as how the results of the three reports are impacted - e.g., Net Worth (Owners' Equity and Retained
Earnings; or Fund Balance), Revenue over Expenses - Net Gain/Loss (Net Income), and Closing Balance.
Indicate the specific references used to prepare the answer.

( Explanation how to provide answer every topic should be explained in detail.

please while giving 3 examples be very detailed and in systematic manner. Explain how when one transaction is Statement of operation will affect the cash flow statement and balance sheet.)