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NNS Hospitals Ltd. is a publicly owned company which owns a chain of hospitals. The Balance Sheet of NNS as of 31/3/2015 is given below:

NNS Hospitals Ltd. is a publicly owned company which owns a chain of hospitals. The Balance Sheet of NNS as of 31/3/2015 is given below:

Liabilities and Owners Equity

Accounts Payable

120,000

Salaries Payable

10,000

Provision for Taxes (2013-14)

90,000

Provision for Taxes (2014-15)

100,000

8% Bank Loan

160,000

Share Capital

400,000

Share Premium

200,000

Retained Earnings

20,000

TOTAL

1,100,000

Assets

Cash

80,000

Inventories of Medical Supplies

120,000

Accounts Receivable

100,000

Less: Allowance for Doubtful Debts

-5,000

95,000

Advance Taxes Paid (2013-14)

95,000

Advance Taxes Paid (2014-15)

100,000

Prepaid Insurance

20,000

Investments in 10% Government Bonds

200,000

Land

150,000

Building

200,000

Less: Accumulated Depreciation

-20,000

180,000

Equipment

100,000

Less: Accumulated Depreciation

-40,000

60,000

TOTAL

1,100,000

Majority of the cash payments and receipts made during the year are given below:

Cash Receipts

Cash Payments

Total Cash Collected from Patients

700,000

Cash Paid for Staff Salaries

110,000

Interest Received on Govt. Bonds

20,000

Cash Paid for Accounts Payable

300,000

Sale of Equipment (31/12/2015)

15,000

Cash Paid for Utilities

50,000

Dividends received

5,000

Loan Repaid (31/3/2016)

20,000

Doctors Honorarium

140,000

Equipment Purchase (30/9/2015)

30,000

Advance Tax Paid

100,000

Dividends paid

50,000

Investment in Stock of ND Co.

20,000

NNS provides services to certain patients on a credit basis. During the current financial year, $300,000 worth of services was provided to such patients on a credit basis and $310,000 was collected from such patients. Due to poor financial condition of certain patients, $6,000 was written-off as bad debts in March 2016. $2,000 worth of previously written-off amounts was collected in January 2016. The firm wishes to maintain a balance of 5% of year-end Accounts Receivable as an allowance for doubtful debts.

2. NNS purchases all inventory of medical supplies on credit. The total purchase in the current financial year amounted to $250,000. The ending balance of inventory of medical supplies was $90,000.

3. The interest on 8% Bank Loan is accrued, but due to a computer glitch, could not be paid till 10th April 2016. The company had to pay a penalty of $10,000 along with the interest on 10th April 2016 for late payment of interest. The penalty becomes due in the year of default.

4. The equipment has a useful life of 5 years and Building has a useful life of 10 years. The equipment that was sold on 31/12/2015 was two years old at the beginning of the year and had a historical cost of $20,000.

5. Salaries for the last two weeks of March 2015 will be paid on 5th April 2016. Such salaries amounted to $15,000. Salaries payable for previous years were paid off in the current year.

6. The prepaid insurance is valid for another 15 months starting from 1/4/2015.

7. Tax assessment for the years 2013-14 and 2014-15 was completed in the current year and the tax was assessed to be Rs. 100,000 for 2013-14 and 95,000 for 2014-15. Shortfall (refund), if any, was paid (received) during the year 2015-16. Provision for taxes for the current year is 25% of Profit before Tax.

8. 10,000 new shares were issued. The face value of shares was $1 and Market value was $20.

Based on the above information, prepare the Balance Sheet, Income Statement, and Cash Flow Statement (Use Indirect Method) for the year ended on 31/3/2016.

thats all information given

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