What are the underlying reasons driving this increase? Address three to four reasons and make sure to
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What are the underlying reasons driving this increase?
- Address three to four reasons and make sure to explain the causes of these driving forces. Table 7.1 shows a considerable increase in assets from year to year.
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TABLE 7.1 Sample Balance Sheet 1-Year ($ in 000's) 3/31/17 3/31/16 Change Growth Current Assets Cash and investments (savings/checking) $80,000 $56,800 $23,200 1 40% Patient revenue (money owed to hospital) $472,000 $370,120 $101,880 1 26% Inventory (on the shelf) $16,400 $15,200 $1,200 8% Subtotal $568,400 $442,120 $126,280 1 29% Less: Bad debt ($57,200) ($77,250) $20,050 I 26% Charitable allowance ($14,100) ($13,680) ($420) 3% Contractual allowance ($269,300) ($233,750) ($35,550) 1 15% 5% (340,600) ($324,680) ($15,920) $117,440 $110,360 Subtotal Total Current Assets $227,800 1 94% Fixed Assets Land $29,000 $27,500 $1,500 5% Buildings (plant) $805,000 $805,000 $0 No Change Equipment $610,000 $624,000 ($14,000) 2% Construction in progress $37,000 $28,000 $9,000 1 32% Total Fixed Assets $1,481,000 $1,484,500 ($3,500) 1 0.2% Less accumulated depreciation ($880,800) ($810,200) ($70,600) 9% Net Fixed Assets $600,200 $674,300 ($74,100) I 11% Total Assets $828,000 $791,740 $36,260 5% Current Liabilities Accounts payable salaries, supplies, pharm $36,560 $27,600 ($8,960) t 32% Accrued compensation and benefits $10,900 $8,280 ($2,620) t 32% Accrued liabilities (interest, physician contracts) $2,520 $2,960 $440 15% Current portion of long-term debt $8,350 $9,000 $650 7% Subtotal $58,330 $47,840 ($10,490) ! 22% Long-Term Liabilities Bonds payable $38,000 $37,000 ($1,000) 3% Mortgage payable $2,100 $1,900 ($200) 1 11% Subtotal $40,100 $38,900 ($1,200) 3% Total Current Liabilities $98,430 $86,740 ($11,690) 1 13% Net Worth (Assets-Liabilities) $729,570 $705,000 $24,570 3% Total Liabilities and Net Worth $828,000 $791,740 $36,260 5% TABLE 7.1 Sample Balance Sheet 1-Year ($ in 000's) 3/31/17 3/31/16 Change Growth Current Assets Cash and investments (savings/checking) $80,000 $56,800 $23,200 1 40% Patient revenue (money owed to hospital) $472,000 $370,120 $101,880 1 26% Inventory (on the shelf) $16,400 $15,200 $1,200 8% Subtotal $568,400 $442,120 $126,280 1 29% Less: Bad debt ($57,200) ($77,250) $20,050 I 26% Charitable allowance ($14,100) ($13,680) ($420) 3% Contractual allowance ($269,300) ($233,750) ($35,550) 1 15% 5% (340,600) ($324,680) ($15,920) $117,440 $110,360 Subtotal Total Current Assets $227,800 1 94% Fixed Assets Land $29,000 $27,500 $1,500 5% Buildings (plant) $805,000 $805,000 $0 No Change Equipment $610,000 $624,000 ($14,000) 2% Construction in progress $37,000 $28,000 $9,000 1 32% Total Fixed Assets $1,481,000 $1,484,500 ($3,500) 1 0.2% Less accumulated depreciation ($880,800) ($810,200) ($70,600) 9% Net Fixed Assets $600,200 $674,300 ($74,100) I 11% Total Assets $828,000 $791,740 $36,260 5% Current Liabilities Accounts payable salaries, supplies, pharm $36,560 $27,600 ($8,960) t 32% Accrued compensation and benefits $10,900 $8,280 ($2,620) t 32% Accrued liabilities (interest, physician contracts) $2,520 $2,960 $440 15% Current portion of long-term debt $8,350 $9,000 $650 7% Subtotal $58,330 $47,840 ($10,490) ! 22% Long-Term Liabilities Bonds payable $38,000 $37,000 ($1,000) 3% Mortgage payable $2,100 $1,900 ($200) 1 11% Subtotal $40,100 $38,900 ($1,200) 3% Total Current Liabilities $98,430 $86,740 ($11,690) 1 13% Net Worth (Assets-Liabilities) $729,570 $705,000 $24,570 3% Total Liabilities and Net Worth $828,000 $791,740 $36,260 5%
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Generally increasing assets are a sign that the company is growing but everyone can relate to the fact that there is much more behind the scenes than ... View the full answer
Related Book For
Federal Taxation 2015 Comprehensive
ISBN: 9780133807783
28th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Posted Date:
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