Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the provided Balance Sheet, Statement of Operations and benchmarks, please perform the following for ABC Community Hospital, a 190-bed acute care facility, for the

Using the provided Balance Sheet, Statement of Operations and benchmarks, please perform the following for ABC Community Hospital, a 190-bed acute care facility, for the years ended 20X0 and 20X1:

a. Perform a horizontal analysis on both statements

b. Perform a vertical analysis on both statements relative to 20X0

c. Compute all financial metrics listed within the Ratios Template worksheet of the attached excel file for both 20X0 and 20X1 (use of provided template required)

d. For each of the following ratio categories listed in the template, discuss the hospitals financial condition and performance during this time period, referencing key analytic findings, as appropriate. image text in transcribed

a. c. Claymont Outpatient Clinic under the accrual basis of accounting at December 31, 20X1. Then develop a balance sheet as of December 31, 20x1, and a state- ment of operations for the year ended December 31, 20X1. The clinic received an $8,000,000 unrestricted cash contribution from the community. (Hint: this transaction increases the unrestricted net assets account.) b. The clinic purchased $5,600,000 of equipment. The clinic paid cash for the equipment. The clinic borrowed $3,000,000 from the bank on a long-term basis. d. The clinic purchased $600,000 of supplies on credit. e. The clinic provided $9,400,000 of services on credit. f. In the provision of these services, the clinic used $300,000 of supplies. g. The clinic received $740,000 in advance to care for capitated patients. h. The clinic incurred $4,000,000 in labor expenses and paid cash for them. i. The clinic incurred $2,500,000 in general expenses and paid cash for them. j. The clinic received $7,300,000 from patients and their third parties in payment of outstanding accounts. k. The clinic met $540,000 of its obligation to capitated patients in transaction g. 1 The clinic made a $300,000 cash payment on the long-term loan. m. The clinic also made a cash interest payment of $35,000. A donor made a temporarily restricted donation of $350,000, which is set aside in temporary investments. n a. c. Claymont Outpatient Clinic under the accrual basis of accounting at December 31, 20X1. Then develop a balance sheet as of December 31, 20x1, and a state- ment of operations for the year ended December 31, 20X1. The clinic received an $8,000,000 unrestricted cash contribution from the community. (Hint: this transaction increases the unrestricted net assets account.) b. The clinic purchased $5,600,000 of equipment. The clinic paid cash for the equipment. The clinic borrowed $3,000,000 from the bank on a long-term basis. d. The clinic purchased $600,000 of supplies on credit. e. The clinic provided $9,400,000 of services on credit. f. In the provision of these services, the clinic used $300,000 of supplies. g. The clinic received $740,000 in advance to care for capitated patients. h. The clinic incurred $4,000,000 in labor expenses and paid cash for them. i. The clinic incurred $2,500,000 in general expenses and paid cash for them. j. The clinic received $7,300,000 from patients and their third parties in payment of outstanding accounts. k. The clinic met $540,000 of its obligation to capitated patients in transaction g. 1 The clinic made a $300,000 cash payment on the long-term loan. m. The clinic also made a cash interest payment of $35,000. A donor made a temporarily restricted donation of $350,000, which is set aside in temporary investments. n

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Environmental Health And Safety Audits

Authors: Lawrence B. Cahill

8th Edition

0865878250, 978-0865878259

More Books

Students also viewed these Accounting questions