Explains to the board of directors about the balance sheet

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Reference no: EM131300759 , Length: word count:700

Balance Sheet Worksheet

Consider the following scenario:

Imagine you are a manager of a small health care facility and in charge of developing an annual balance sheet to help your stakeholders understand the organization's financial standing.

Your health care facilities figures are as follows:

Your facility has $700,000 of cash on hand, $1,300,000 in accounts receivables, $175,000 in inventory, and $150,000 in supplies.

Your chief financial officer has provided you with the following assets:

Land value

$3,000,000

Property value

$   187,500

Plant value

$   187,500

Investment income (loss)

$   147,000

Equipment value

$   350,000

Your chief financial officer has provided you with the following liabilities:

Accounts payable

$1,400,000

Wages payable

$   480,000

Taxes payable

$   225,000

Loans payable

$   70,000

Accounts payable

$   68,000

Your chief financial officer has provided you with the following owners equity:

Retained earnings

$   148,000

Stock

$   340,000

Using the ABC Health Care Balance Sheet template, complete a balance sheet in which you include the net profit (loss).

Write a 350- to 700-word executive summary that explains to the board of directors how you developed the balance sheet and its importance.

Include the following in your summary:

  • Explain the process for creating a balance sheet.
  • Explain the total assets, liabilities, and net worth (loss).
  • Explain the use of profitability, liquidity, and debt ratios.

 

Cite at least 2 sources, including your textbook.

Format your assignment according to APA guidelines.

Click the Assignment Files tab to submit your assignment.

Reference no: EM131300759

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