Question

The following are account balances as of September 30, 2020, for Ray Hospital. Prepare a balance sheet for the given date i.e., September 30, 2020. (Hint net assets will also need to be calculated.) Also Find out the Current Ratio , and Net Working Capital Givens Gross plant, property, and equipment               $70,000,000 Accrued expenses                                                   $6,000,000 Cash                                                                         $8,000,000 Net accounts receivable                                        $15,500,000                                          Accounts payable                                                   $7,000,000 Long-term debt                                                      $45,000,000 Supplies                                                                   $3,000,000 Accumulated depreciation                                   $5,000,000

Answer 1

Using excel or Balance sheet

	Asset		Liabilities
Cash	$     8,000,000.00	Accrued Expenses	$              6,000,000.00
Net account receivable	$   15,500,000.00	Account Payable	$              7,000,000.00
Supplies	$     3,000,000.00	Current Liabilities	$            13,000,000.00
Current assets	$   26,500,000.00	Long Term Debt	$            45,000,000.00
Gross Plant,property and equipment	$   70,000,000.00	Equity	$            33,500,000.00
Accumulated Depreciation	$     5,000,000.00
Net Fixed asset	$   65,000,000.00
Total Assets	$   91,500,000.00	Total Liabilities and equity	$            91,500,000.00

Current ratio =Current assets/Current liabilities =(Cash + Account receivable + Supplies)/(Accrued Expenses + Account Payable ) =(8000000+15500000+3000000)/(6000000+7000000) =2.03

Net Working capital =Current assets-Current liabilities =(Cash + Account receivable + Supplies)-(Accrued Expenses + Supplies ) =(8000000+15500000+3000000)-(6000000+7000000) =13500000