In: Finance
Instructions:
For this assignment, you will create a cash flow statement for Happy Healing Hospital for 2016.
The information for 2016 has been collected from various sources within the healthcare organization and is listed in the info below. It is not nice and neat. The entries are not lined up very well and may be a little out of order for your report but the information that you need to create this statement is all listed. It is up to you to create the statement and make it presentable.
You will find the information for 2015 has already been entered in the spreadsheet as an example to go by.
To complete this assignment, please do the following:
Happy Healing Hospital - Cash Flow Statement |
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Reported Values | |||
Operating Activities |
2015 | 2016 | |
Cash received from patients and third party payors | $19,915,566 | ||
Cash paid to employees for salaries and benefits | ($11,081,726) | ||
Cash paid to vendors for goods and services | ($7,166,776) | ||
Other operating receipts, net | $671,212 | ||
Net cash from operating activities | $2,338,276 | ||
Capital and related financing activities |
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Acquisition and construction of capital assets | ($477,992) | ||
Proceeds from sale of capital assets | $3,980 | ||
Interest paid on long-term debt | ($42,184) | ||
Payments on line of credit | - | ||
Proceeds on long-term debt | - | ||
Principal payments on long-term debt | ($391,003) | ||
Net cash from capital and related financing activities | ($907,199) | ||
Investing activities |
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Investment and other nonoperating income | $108,045 | ||
Net cash from investing activities | $108,045 | ||
Net change in cash and cash equivalents | $1,728,113 | ||
Cash and cash equivalents, beginning of year | $2,379,906 | ||
Cash and cash equivalents, end of year | $4,324,109 | ||
Reconciliation of cash and cash equivalents to the balance sheets |
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Cash and cash equivalents | |||
In current assets | $5,166,428 | ||
In noncurrent cash and investments | $809,491 | ||
Total cash and cash equivalents | $5,975,919 | ||
Reconciliation of operating loss to net cash from operating activities |
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Operating income | $861,828 | ||
Adjustments to reconcile operating income to net cash from operating activities: |
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Depreciation and amortization | $1,883,051 | ||
(Gain) loss on disposal of capital assets | ($525) | ||
Provision for bad debt | $1,281,107 | ||
Changes in assets and liabilities | |||
Patient accounts receivable | ($2,044,870) | ||
Estimated third-party settlements | $1,199,971 | ||
Supplies and other current assets | $90,264 | ||
Other assets | ($7,698) | ||
Accounts payable and accrued expenses | $2,077,036 | ||
Other current liabilities | $57,535 | ||
Accrued salaries and related liabilities | ($2,405,197) | ||
Other long-term liabilities | ($25,000) | ||
Net cash flows from operating activities |
$2,967,502 |
2016 |
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Acquisition and construction of capital assets |
($401,572) |
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Proceeds from sale of capital assets |
- |
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Interest paid on long-term debt |
($48,036) |
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Payments on line of credit |
($150,000) |
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Proceeds on long-term debt |
$125,000 |
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Principal payments on long-term debt |
($352,225) |
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Cash and cash equivalents |
|||||||||||
In current assets |
$1,739,826 |
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In noncurrent cash and investments |
$640,080 |
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Total cash and cash equivalents |
$2,379,906 |
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Depreciation and amortization |
$1,243,393 |
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(Gain) loss on disposal of capital assets |
$246,456 |
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Provision for bad debt |
$1,402,017 |
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Changes in assets and liabilities |
|||||||||||
Patient accounts receivable |
($717,771) |
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Estimated third-party settlements |
$300,318 |
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Supplies and other current assets |
($221,648) |
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Other assets |
$7,760 |
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Accounts payable and accrued expenses |
($364,752) |
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Other current liabilities |
$77,440 |
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Accrued salaries and related liabilities |
$186,109 |
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Other long-term liabilities |
($35,000) |
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Cash received from patients and third party payors $20,363,530 |
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Cash paid to employees for salaries and benefits |
($11,349,910) |
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Cash paid to vendors for goods and services |
($7,724,464) |
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Other operating receipts, net |
$1,015,964 |
Happy Healing Hospital - Cash Flow Statement |
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Reported Values | |||
Operating Activities |
2015 | 2016 | |
Cash received from patients and third party payors | $19,915,566 | $20,363,530 | |
Cash paid to employees for salaries and benefits | ($11,081,726) | ($11,349,910) | |
Cash paid to vendors for goods and services | ($7,166,776) | ($7,724,464) | |
Other operating receipts, net | $671,212 | $1,015,964 | |
Net cash from operating activities | $2,338,276 | $2,305,120 | |
Capital and related financing activities |
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Acquisition and construction of capital assets | ($477,992) | ($401,572) | |
Proceeds from sale of capital assets | $3,980 | - | |
Interest paid on long-term debt | ($42,184) | ($48,036) | |
Payments on line of credit | - | ($150,000) | |
Proceeds on long-term debt | - | $125,000 | |
Principal payments on long-term debt | ($391,003) | ($352,225) | |
Net cash from capital and related financing activities | ($907,199) | ($826,833) | |
Investing activities |
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Investment and other nonoperating income | $108,045 | ($103,893) | |
Net cash from investing activities | $108,045 | ($103,893) | |
Net change in cash and cash equivalents | $1,728,113 | $1,374,394 | |
Cash and cash equivalents, beginning of year | $2,379,906 | $1,005,512 | |
Cash and cash equivalents, end of year | $4,324,109 | $2,379,906 | |
Reconciliation of cash and cash equivalents to the balance sheets |
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Cash and cash equivalents | |||
In current assets | $5,166,428 | $1,739,826 | |
In noncurrent cash and investments | $809,491 | $640,080 | |
Total cash and cash equivalents | $5,975,919 | $2,379,906 | |
Reconciliation of operating loss to net cash from operating activities |
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Operating income | $861,828 | $180,798 | |
Adjustments to reconcile operating income to net cash from operating activities: |
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Depreciation and amortization | $1,883,051 | $1,243,393 | |
(Gain) loss on disposal of capital assets | ($525) | $246,456 | |
Provision for bad debt | $1,281,107 | $1,402,017 | |
Changes in assets and liabilities | |||
Patient accounts receivable | ($2,044,870) | ($717,771) | |
Estimated third-party settlements | $1,199,971 | $300,318 | |
Supplies and other current assets | $90,264 | ($221,648) | |
Other assets | ($7,698) | $7,760 | |
Accounts payable and accrued expenses | $2,077,036 | ($364,752) | |
Other current liabilities | $57,535 | $77,440 | |
Accrued salaries and related liabilities | ($2,405,197) | $186,109 | |
Other long-term liabilities | ($25,000) | ($35,000) | |
Net cash flows from operating activities |
$2,967,502 |
Net cash flows from operating activities for 2016=$4,479,215