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FINANCIAL MANAGEMENT OF HEALTH SYSTEMS ASSIGNMENT -
Q1. Given below is a list of account balances for Dade Hospital as of December 31, 2016. Prepare a balance sheet as of December 31, 2016, in proper form. (Hint: You will need to compute the net assets account. Assume that all net assets at the beginning of the year are unrestricted.)
Account
Balance
Gross plant & equipment
$6,000,000
Accounts payable
130,000
Inventories
100,000
Other current liabilities
70,000
Net accounts receivable
650,000
Accrued expenses
Accumulated depreciation
200,000
Long-term debt
5,000,000
Cash
210,000
Q2. Below is a list of accounts for Dade Hospital for December 2016 (annual amounts). Prepare a statement of operations for 2016 in good form.
Amount
Administrative expenses
$80,000
Net assets released from temporarily restricted accounts for operations
120,000
Labor expense
260,000
Interest expense
12,000
Net patient service revenue
840,000
Supply expense
88,000
Transfer to parent corporation
10,000
Bad debt expense
40,000
Depreciation expense
50,000
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