Question
wards Lake Community Hospital balance sheet as of December 31, 2017, follows. EDWARDS LAKE COMMUNITY HOSPITAL Balance Sheet As of December 31, 2017 Assets Current
wards Lake Community Hospital balance sheet as of December 31, 2017, follows.
EDWARDS LAKE COMMUNITY HOSPITAL | |||||||||
Balance Sheet | |||||||||
As of December 31, 2017 | |||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and Cash Equivalents | $ | 272,600 | |||||||
Accounts and notes receivable (net of uncollectible accounts of $15,900) | 26,600 | ||||||||
Inventory | 72,600 | ||||||||
Total current assets | 371,800 | ||||||||
Assets limited as to use: | |||||||||
Cash | $ | 17,240 | |||||||
Investments | 229,720 | ||||||||
Total assets limited as to use | 246,960 | ||||||||
Property, plant, and equipment: | |||||||||
Land | 210,600 | ||||||||
Buildings (net of accumulated depreciation of $1,623,100) | 2,893,500 | ||||||||
Equipment (net of accumulated depreciation of $1,024,600) | 1,859,000 | ||||||||
Total property, plant, and equipment | 4,963,100 | ||||||||
Total assets | $ | 5,581,860 | |||||||
Liabilities and Net Assets | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 19,300 | |||||||
Accrued payroll | 45,200 | ||||||||
Current portion of mortgage payable | 505,000 | ||||||||
Total current liabilities | 569,500 | ||||||||
Long-term debtmortgage payable | 2,510,000 | ||||||||
Total liabilities | 3,079,500 | ||||||||
Net assets: | |||||||||
Unrestricted | |||||||||
Undesignated | 2,083,260 | ||||||||
Designated for plant | 246,860 | ||||||||
Temporarily restricted | 172,240 | 2,502,360 | |||||||
Total liabilities and net assets | $ | 5,581,860 | |||||||
The following are the transactions of Edwards Lake Community Hospital during the fiscal year ended December 31, 2017. |
(1) | Information related to accrual of revenues and gains is as follows: |
Patient services revenue, gross | $ | 3,501,000 |
Charity care | 211,760 | |
Contractual adjustments to patient service revenues | 1,521,000 | |
Other operating revenues | 998,950 | |
(2) | Cash received includes: |
Interest on investments in Assets Limited as to Use | 7,450 | |
Collections of receivables | 2,961,100 | |
(3) | Expenses of $891,500 were recorded in accounts payable and $1,454,990 in accrued payroll. Since some of the nursing expenses met a temporary net asset restriction, $94,500 was released from temporary restrictions. |
Administration expenses | 446,980 | |
General services expenses | 524,610 | |
Nursing services expenses | 1,031,900 | |
Other professional services expenses | 343,000 | |
(4) | Cash paid includes: |
Interest expense (allocated half to nursing services and half to general services) | $ | 281,000 |
Payment on mortgage principal | 505,000 | |
Accounts payable for purchases | 837,000 | |
Accrued payroll | 1,280,000 | |
(5) | Interest of $1,230 accrued on investments in Assets Limited as to Use. |
(6) | Depreciation charges for the year amounted to $117,500 for the buildings and $129,000 for equipment. Depreciation was allocated 45 percent to nursing services, 15 percent to other professional services and 20 percent to each administrative and general services. |
(7) | Other information: |
(a) | Provision for uncollectible receivables was determined to be adequate. |
(b) | Supplies inventory balances: |
12/31/2016 | 12/31/2017 | |||||||
Administration | $ | 8,300 | $ | 7,500 | ||||
General services | 9,000 | 9,500 | ||||||
Nursing services | 17,500 | 17,000 | ||||||
Other professional services | 37,800 | 41,000 | ||||||
Totals | $ | 72,600 | $ | 75,000 | ||||
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