Question 2 (15 marks) Items from the Wagga Wagga Hospital's balance sheet, revenue and expense (income) statement and cashflow statement for the 2016/17 and 2017/18 financial years (ending 30 June) were accidentally listed in alphabetical order as follows: expenses received Expenses Cash flow information 2018 33.429 1,243,626 1,537,993 1,243,626 33,128 5,186,520 5,130,345 8,020 88,727 36,561 3,487,063 3,506,782 0 692,338 2,930,781 63,571 1,692,467 1,328,683 2017 108,029 1,125,445 Capital Grants from Government Cash at beginning of period Cash at end of period Donations and Bequests Received Employee Expenses Paid GST Received from ATO Interest Received Non-Salary Labour Costs Operating Grants from Government Other Capital Receipts Other Receipts Patient and Resident Fees Received Payments for Non-Financial Assets Payments for Supplies & Consumables Proceeds from sale of Non-Financial Assets 38,724 172 71,150 17,644 33,296 810,792 2,257,929 264,621 32,600 The cash balances at the beginning and end of the period do not correspond to the figures in the balance sheet as this hospital also holds cash in trust for other organisations and/or individuals. Required a. Prepare balance sheets for these two financial years. Arrange these statements like the balance sheets for the Barwon Health that are in the course materials - i.e. the statements for the two years should be side by side. Make sure to distinguish between current and non-current assets and liabilities. Prepare income (profit and loss) statements for these two years for this hospital. What were the main liquid assets of the hospital in these two financial years? What were the main short-term debts of the hospital in these two financial years? Do you think that this hospital is in a good position to pay its short-term debts? Explain your answer Prepare a cashflow statement showing operating, investing and financing cashflows for these two financial years One of the hospital's surplus buildings has a book value of $3 million and it received an offer of $5 million for this property. Do you think that the hospital should accept this offer? Explain what factors the management should consider before accepting this offer b. c. d. e. 3 marks for each section Question 2 (15 marks) Items from the Wagga Wagga Hospital's balance sheet, revenue and expense (income) statement and cashflow statement for the 2016/17 and 2017/18 financial years (ending 30 June) were accidentally listed in alphabetical order as follows: expenses received Expenses Cash flow information 2018 33.429 1,243,626 1,537,993 1,243,626 33,128 5,186,520 5,130,345 8,020 88,727 36,561 3,487,063 3,506,782 0 692,338 2,930,781 63,571 1,692,467 1,328,683 2017 108,029 1,125,445 Capital Grants from Government Cash at beginning of period Cash at end of period Donations and Bequests Received Employee Expenses Paid GST Received from ATO Interest Received Non-Salary Labour Costs Operating Grants from Government Other Capital Receipts Other Receipts Patient and Resident Fees Received Payments for Non-Financial Assets Payments for Supplies & Consumables Proceeds from sale of Non-Financial Assets 38,724 172 71,150 17,644 33,296 810,792 2,257,929 264,621 32,600 The cash balances at the beginning and end of the period do not correspond to the figures in the balance sheet as this hospital also holds cash in trust for other organisations and/or individuals. Required a. Prepare balance sheets for these two financial years. Arrange these statements like the balance sheets for the Barwon Health that are in the course materials - i.e. the statements for the two years should be side by side. Make sure to distinguish between current and non-current assets and liabilities. Prepare income (profit and loss) statements for these two years for this hospital. What were the main liquid assets of the hospital in these two financial years? What were the main short-term debts of the hospital in these two financial years? Do you think that this hospital is in a good position to pay its short-term debts? Explain your answer Prepare a cashflow statement showing operating, investing and financing cashflows for these two financial years One of the hospital's surplus buildings has a book value of $3 million and it received an offer of $5 million for this property. Do you think that the hospital should accept this offer? Explain what factors the management should consider before accepting this offer b. c. d. e. 3 marks for each