Answer the following discussion questions and provide APA style referencing where applicable : Question 1

Look at costs that are shared by the A&E department with other units. The hospital has performed14,000 X-ray examinationsat a cost of$1 000 000.Identify the shared cost to be apportioned to each department on the basis of the number of requests.

X-rays performed by radiology department.

Department	Number of requests	Costs ($)
A&E	1 200
General Medicine	2 500
Surgery	3 000
Orthopedics	1 000
Paediatrics	1 300
Other	5 000
TOTAL	14 000	1 000 000

(3 marks)

Question 2

The following items were taken from a recent cash flow statement. Mark each item in the list as a cash flow from operating activities (O), investing activities (I) or financing activities (F).

1. Receipts from customers
2. Borrowings repaid.
3. Proceeds from sale of land.
4. Dividends received.
5. Income tax paid
6. Investment in shares.
7. Interest paid on bills
8. Dividends paid.
9. Proceeds from issue of shares.
10. Payment of rent.

(5 marks)

Question 3

In its first year of operations which ended on 30 June 2019, the FNU UniClinic provided $145,000 in patient consultations, $43,000 of which had not been received from BSP Life Insurance at year end. The remaining $102,000 was received in cash from patients and BSP Life Insurance. The clinic incurred operating expenses of $52,000 during the year. Of these expenses $42,500 had been paid in cash; $9,500 was still owing to numerous creditors at year-end. In addition, on 26 June 2019, the UniClinic has paid$13,500 in cash in advance for rent on the patients seen for the months of July, August, and September 2019.

1. Calculate the first year's profit under the cash basis of accounting.

(2.5 marks)

1. Calculate the first year's profit under the accrual basis of accounting.

(2.5 marks)

1. Which basis of accounting do you think is more useful for decision-making?

(5 marks)

Question 4

Suppose you are a manager of an A&E department. From the following list,identify four itemswhich representdirect, indirect, and overhead costs: nurses, cotton wool, laboratory tests, drugs, endotracheal tubes, drainage bags, scalpels, cannulae, telephones, staff travel, administrator, photocopying, clerical officer, secretary, medical officer, estate administration, lightning, catering staff, x-ray department, clinical director, gauze bandages, printing and stationery, heating, kitchen.

(6 marks)

Question 5

The FNU University Clinic reported revenuesof $65,000 and net incomeof $15,000 for 2019. Cash generated by operations was $20,000. In addition, the clinic borrowed

$14,000 from the BSP bank. During 2019, the clinic purchased new equipment for

$10,000 cash and paid cash dividends of $5,000 to stockholders. The cash balance at the beginning of 2019 was $10,000.

1. Identify the amount of cash flows for financing, investing, and operating activities for 2019 by filling in the amounts below. Show your calculations. (3 marks)

1. Did the clinic's operating activities generate enough cash to cover its investing and financing activities? Explain your answer. (4 marks)

1. How much did the clinic's cash balance increase or decrease during 2018? (2 marks)

Question 6

What is the effect (both direction and magnitude) of each of the following transactions on the Accounting Equation?

1. Issued $4 702 000 in additional shares for cash.
2. Paid wage of $100 000.
3. Purchased clothing merchandise for $45, 700.
4. Purchased additional buildings for $847 900; paid $139 800 in cash took loan for the rest
5. Declared $2 516 000 in dividends, to be paid in the following year.
6. Ordered some medical equipment to be delivered next month for $294 000
7. Received $90,000 from accounts receivable.

(7 marks)

Question 7

Given the following financial information, prepare a Profit and Loss Statement and a

Balance Sheet Statement for the CWM Hospital for the 2019/20 financial year.

$

Accounts Receivable 5,000

Accounts Payable 3,000

Advertising Expense 700

Building 15,000

Cash 4500

Cost of goods sold 8500

Electricity 800

Furniture 10,000

Inventory 3600

Loan payable, long term 9000

Rent 1400

Retained Profits 13,600

Sales 19,500

Share capital 12,500

Dividends paid 25,000

Important points to note:

(i) The standard heading of each financial statement - try to know the difference on how the heading is written

(ii) Correct items to appear ONLY in the Profit and Loss statement - only financial info to be appeared in P&L statement should be seen here.

(iii) Correct items to appear ONLY in the Balance Sheet statement - only financial info to be appeared in BS statement should be seen here.

(iv) Few items might not appear either in the balance sheet orP&L statement.

(15 Marks)