These three statements are the statement of financial position or balance sheet, statement of comprehensive income or profit and loss statement, and statement of cash flow. The balance sheet describes the financial position of an organization at a single point in time. The profit and loss statement summarizes the revenues and expenses of an organization or department. The cash flow statement is concerned with the flow of cash into and out of an organization.

Table 7.1 shows a considerable increase in assets from year to year.

• What are the underlying reasons driving this increase?
• Address three to four reasons and make sure to explain the causes of these driving forces.

TABLE 7.1 Sample Balance Sheet 1-Year Growth 3/31/17 3/31/16 Change 1 40% 1 26% $80,000 $472,000 $16,400 $568,400 $56,800 $23,200 $370,120 $101,880 $15,200 $1,200 $442,120 $126,280 1 8% 1 29% ($57,200) ($77,250) $20,050 ($14,100) ($13,680) ($420) ($269,300) ($233,750) ($35,550) (340,600) ($324,680) ($15,920) $227,800 $117,440 $110,360 I 26% 3% 1 15% 1 5% 1 94% ($ in 000's) Current Assets Cash and investments (savings/checking) Patient revenue (money owed to hospital) Inventory (on the shelf) Subtotal Less: Bad debt Charitable allowance Contractual allowance Subtotal Total Current Assets Fixed Assets Land Buildings (plant) Equipment Construction in progress Total Fixed Assets Less accumulated depreciation Net Fixed Assets Total Assets Current Liabilities Accounts payable salaries, supplies, pharm Accrued compensation and benefits Accrued liabilities (interest, physician contracts) Current portion of long-term debt Subtotal Long-Term Liabilities Bonds payable Mortgage payable Subtotal Total Current Liabilities Net Worth (Assets-Liabilities) Total Liabilities and Net Worth $29,000 $27,500 $1,500 1 5% $805,000 $805,000 $0 No Change $610,000 $624,000 $14,000) ! 2% $37,000 $28,000 $9,000 1 32% $1,481,000 $1,484,500 ($3,500) I 0.2% ($880,800) ($810,200) $70,600) ! 9% $600,200 $674,300 $74,100) I 11% $828,000 $791,740 $36,260 1 5% $36,560 $10,900 $2,520 $27,600 $8,280 $2,960 ($8,960) ($2,620) $440 1 32% 1 32% 15% 1 7% $8,350 $58,330 $9,000 $650 $47,840 $10,490) I 22% 1 3% 1 11% 1 3% $38,000 $2,100 $40,100 $98,430 $729,570 $828,000 $37,000 ($1,000) $1,900 ($200) $38,900 ($1,200) $86,740 ($11,690) $705,000 $24,570 $791,740 $36,260 1 13% 1 3% 1 5% TABLE 7.1 Sample Balance Sheet 1-Year Growth 3/31/17 3/31/16 Change 1 40% 1 26% $80,000 $472,000 $16,400 $568,400 $56,800 $23,200 $370,120 $101,880 $15,200 $1,200 $442,120 $126,280 1 8% 1 29% ($57,200) ($77,250) $20,050 ($14,100) ($13,680) ($420) ($269,300) ($233,750) ($35,550) (340,600) ($324,680) ($15,920) $227,800 $117,440 $110,360 I 26% 3% 1 15% 1 5% 1 94% ($ in 000's) Current Assets Cash and investments (savings/checking) Patient revenue (money owed to hospital) Inventory (on the shelf) Subtotal Less: Bad debt Charitable allowance Contractual allowance Subtotal Total Current Assets Fixed Assets Land Buildings (plant) Equipment Construction in progress Total Fixed Assets Less accumulated depreciation Net Fixed Assets Total Assets Current Liabilities Accounts payable salaries, supplies, pharm Accrued compensation and benefits Accrued liabilities (interest, physician contracts) Current portion of long-term debt Subtotal Long-Term Liabilities Bonds payable Mortgage payable Subtotal Total Current Liabilities Net Worth (Assets-Liabilities) Total Liabilities and Net Worth $29,000 $27,500 $1,500 1 5% $805,000 $805,000 $0 No Change $610,000 $624,000 $14,000) ! 2% $37,000 $28,000 $9,000 1 32% $1,481,000 $1,484,500 ($3,500) I 0.2% ($880,800) ($810,200) $70,600) ! 9% $600,200 $674,300 $74,100) I 11% $828,000 $791,740 $36,260 1 5% $36,560 $10,900 $2,520 $27,600 $8,280 $2,960 ($8,960) ($2,620) $440 1 32% 1 32% 15% 1 7% $8,350 $58,330 $9,000 $650 $47,840 $10,490) I 22% 1 3% 1 11% 1 3% $38,000 $2,100 $40,100 $98,430 $729,570 $828,000 $37,000 ($1,000) $1,900 ($200) $38,900 ($1,200) $86,740 ($11,690) $705,000 $24,570 $791,740 $36,260 1 13% 1 3% 1 5%