A) | a) INCOME STATEMENT | ||
Service revenue | |||
Operating expenses | $ 1,700,000.00 | ||
Salaries expense | $ 712,000.00 | ||
Supplies expense | $ 10,000.00 | ||
Depreciation expense-PPE | $ 150,000.00 | ||
Bad debts | $ 44,000.00 | $ 916,000.00 | |
Net income | $ 784,000.00 | ||
BALANCE SHEET | |||
Current Assets | |||
Cash (70000-683000+750000+1124000-575000) | $ 686,000.00 | ||
Accounts receivables (245000+1700000-1124000) | $ 821,000.00 | ||
Allowance for doubtful accounts (18000+44000) | $ (62,000.00) | ||
Medical supplies (24000+12000-10000) | $ 26,000.00 | $ 1,471,000.00 | |
Non-Current Assets | |||
Property and equipment | $ 1,500,000.00 | ||
Accumulated depreciation (300000+150000) | $ 450,000.00 | ||
$ 1,050,000.00 | |||
Total assets | $ 2,521,000.00 | ||
Current liabilities | |||
Accounts payable (21000+12000) | $ 33,000.00 | ||
Salaries payable (712000-683000) | $ 29,000.00 | ||
Notes payable (500000+750000-575000) | $ 675,000.00 | $ 737,000.00 | |
Equity (1000000+784000) | $ 1,784,000.00 | ||
Total liabilities & Equity | $ 2,521,000.00 | ||
b) Net working capital = Current Asset - Current Liabilities | |||
= $14,71,000-$7,37,000 = $7,34,000 | |||
c) Debt ratio = Current Liability/Total liabilities | |||
$737000/$2521000 = 29.23% | |||
d) Debt ratio of sunnyvale = 100747/154815 = 65.08% | |||
The debt ratio is very high in Sunnyvale as compared to Florida As we are concerned with Florida The debt ratio will indicate the leverage of company, higher the debt ratio the more leveraged the company will be , which indicates more financial risk. For Florida the financial risk is very low as compared with Sunnyvale. |
Florida Hospital Apopka, a not-for profit organization, began 2018 with the following account balances on January...
Florida Hospital Apopka, a not-for profit organization, began 2018 with the following account balances on January 1: Cash $70,000 Accounts receivable 245,000 Allowance for doubtful accounts 18,000 Supplies inventory 24,000 Property and Equipment 1,500,000 Accumulated depreciation 300,000 Accounts payable 21,000 Notes payable (short-term bank loans) 500,000 Net assets 1,000,000 During 2018, the accounting clerk recorded the following transactions (Florida Hospital Apopka’s year end is December 31): Transaction Number Event Amount 1. Billed patients for services rendered $1,700,000 2. Purchased medical...
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