Question

Balance Sheet Yearly Year 1 Year 2 Year 3 Year 4 Year 5 $4'240731 $38'656327 $0 $0 Current Assets: Cash & Bank Balance Accounts Receivable Inventory Other Current Assets Total Current Assets $83250 $0 $4'323981 $11687'875 $0 $180023 $0 $11'867'897 $22825830 $0 $287 331 $0 $23'113'160 $418 206 $0 $39'074'533 $58'958'961 $0 $542965 $0 $59'501'926 Non-Current Assets Fixed Assets - Gross Accumulated Depreciation $34'275 $6'855 $27'420 $0 $27'420 $34'275 $13710 $20'565 $58'550 $21779 $36771 $58'550 $33'489 $25'061 $58'550 $45'199 $13351 $0 $13351 $0 Other Non-current assets Total Non-Current Assets $20'565 $36'771 $25'061 Total Assets $4'351'401 $11'888'462 $23'149'932 $39'099'594 $59'515'277 $0 $0 $0 $8630-452 $2778'600 $8'630460 Current Liabilities: Accounts Payable Income received in advance Current Borrowings Other Current Liabilities Total Current Liabilities $15'939'584 $0 $5'596'353 $0 $0 $5'596'353 $0 $o $0 $0 $12'122986 $0 $0 $12'122986 $ SO $2778*600 $89630'452 $15'939'584 Non-current Liabilities: Long term Debt Other long term liabilities Total Non-Current Liabilities $0 $0 $0 $0 $0 $0 $0 $49'275 $49'275 $49'275 $49'275 Equity: Owner Investment Investor Investment Retained Earnings Total Equity $0 $0 $0 $49'275 $0 $1'523'526 $1'572 801 $6242834 $6'292'109 $14'470'205 $14'519'480 $26927'334 $26'976'609 $43'526418 $43'575693 Total Liabilities and Equity $4'351'401 $11'888'462 $23'149'932 $39'099'594 $59'515'277 Check - $0 $0 $0 $0 $0

1) Locate a health care-related balance sheet. - The source of the balance sheet can be internal (within a health care facility, heath care organization, health care institution of some type) or external health care related article that includes a balance sheet (from a published article or from a health care company’s annual report, for example). The balance sheet of choice can also be on a quarterly basis and or annual basis. -Post a copy of the balance sheet as a Link (URL), JPEG, screen shot, PDF or copy and paste the balance sheet within the discussion board forum with your response. See Example Heath care Related Quarterly and Annually Balance Sheet link below: Molina Healthcare.pdf Preview the document

2) Write your impression and or comment about the assets, liabilities, net worth, revenues, etc. found on your balance sheet. Would you prefer more details? Yes or No? Explain your reasoning.

3) Do you think the balance sheet you have posted/reported gives you useful information? Why or Why not? How do you think it could be improved? Explain your reasoning.

4) Refer to Chapter 5: What do you believe the proportion of revenues from different sources is for any healthcare organization?Do you believe this proportion (payer mix) will change in the future? Why?Explain your reasoning.

Answer 1

2. This Balance sheet in the first year the current ratio comes about to be 1.5 times whereas the ideal ratio is 2 times so it is lesser than average so prima facie we can say that the ratio is a bit unfavourable but when we look at the liquid ratio(Quick Ratio) it is also nearing 1.5 for which the standard is 1 times so it appears that the liquid assets are sufficient but later on Current ratio is gradually increasing upto 3.75 a lot high therefore we can say that current assets are far more than the current liabilities because we are piling up cash and not utilizing it properly therefore we can say that we are not properly utilizing our resources.

But we are not provided with profit and loss accounts and notes to account so we cannot comment upon gross profit ratio, net profit ratio and many other ratios plus we are not aware of the exact nature of the assets, liabilities, expenses and income. So, in my opinion the information is not sufficient.

3. This balance sheet do give useful information but not complete information as Statement of Profit and Loss is missing plus notes to accounts is not provided.

4. In the health sector most of the revenue comes from Patient service hospitalization, other income are generally negligible in nature. In the future I think that hospitals will also come out with other Health related services like Holding seminars, providing online Consultations and sending online medicines and similar services