Question

Below I give you balance sheet information for 3 not-for-profit clinics. Fill in the blanks. Use commas in your answer. For instance, please type 30,000 instead of 30000. Assume that the clinics do not receive donations or investment income during the year. Clinic 1 Clinic 2 Clinic 3 "Dec 31, 2010" Assets 80,000 100,000 Liabilities 50,000 75000 Equity 60,000 45000 "Dec 31, 2011" Assets 130,000 180000 Liabilities 55,000 62,000 Equity 45,000 110000 "During 2011" Total 400,000 revenues Total 330,000 360000

Would you still be able to complete the table if the clinics were for-profit instead of not-for-profit? If not, explain why not?

Answer 1

Equity = Assets - Liabilities
Change in Equity = Profit earned during the year - Dividend paid
	Clinic 1	Clinic 2	Clinic 3
Dec 31,2010
Assets	80,000	100,000	120,000
Liabilities	50,000	40,000	75,000
Equity	30,000	60,000	45,000
Dec 31,2011
Assets	100,000	130,000	180,000
Liabilities	55,000	62,000	70,000
Equity	45,000	68,000	110,000
During 2011
Revenues	345,000	400,000	425,000
Expenses	330,000	392,000	360,000
Yes, because the table is completed on the basis of general accounting equations which hold true in every case