Question 1: If a business owns a piece of real estate worth $250,000, and they owe $180,000 on a loan for that real estate, what is owners equity in the property?

The Balance Sheet

Question 2: State the following accounts as to whether theyre Asset or Liability

Accounts Receivable:

Cash:

Notes Payable:

The Income Statement

Question 3: Given the following information, calculate ABC Corps Net Income:

Sales: $260,000

Cost of Goods Sold: $100,000

Salaries and Wages: $20,000

Rent Expense: $65,000

Advertising Expense: $35,000

Question 4: Using the above information, calculate ABC Corps Gross Profit.

The Cash Flow Statement

Question 5: Calculate cash flow from operating activities using the following information:

Cash sales: $10,000

Cash received from prior credit sales: $8,000

Rent paid: $3,000

Inventory purchased: $6,000

Wages paid: $5,000

Question 6: Find an income statement (called a statement of revenue and expense in your book) from a hospital within the last 5 years. They are publicly available. If you have trouble, contact me.

6a. Review what an income statement looks like and contains in real life. Complete the following ratios as outlined on page 128:

• Current ratio
• Quick ratio
• Days Cash on Hand
• Days Receivables
• Operating margin
• Return on total assets

6b. After completing the ratios, state in your own words what this means about the OVERALL financial health of the hospital, you do not need to state which each ratio specifically means.

For example, the operating margin is negative, with high days in receivables and only 3 days cash on hand. This hospital is losing money, not collecting what is owed to them fast enough and does not have enough cash to cover emergency expenses.this appears to show a poor financial performance.