Instructions:

For this assignment, you will create a cash flow statement for Happy Healing Hospital for 2016.

The information for 2016 has been collected from various sources within the healthcare organization and is listed in the info below. It is not nice and neat. The entries are not lined up very well and may be a little out of order for your report but the information that you need to create this statement is all listed. It is up to you to create the statement and make it presentable.

You will find the information for 2015 has already been entered in the spreadsheet as an example to go by.

To complete this assignment, please do the following:

• add a column next to 2015 and label it 2016 for side-by- side comparison.
• enter the information below in the appropriate cell.
• create formulas to total each section as was done for 2015.

• Happy Healing Hospital - Cash Flow Statement
  		Reported Values
  Operating Activities		2015	2016
  	Cash received from patients and third party payors	$19,915,566
  	Cash paid to employees for salaries and benefits	($11,081,726)
  	Cash paid to vendors for goods and services	($7,166,776)
  	Other operating receipts, net	$671,212
  	Net cash from operating activities	$2,338,276
  Capital and related financing activities
  	Acquisition and construction of capital assets	($477,992)
  	Proceeds from sale of capital assets	$3,980
  	Interest paid on long-term debt	($42,184)
  	Payments on line of credit	-
  	Proceeds on long-term debt	-
  	Principal payments on long-term debt	($391,003)
  	Net cash from capital and related financing activities	($907,199)
  Investing activities
  	Investment and other nonoperating income	$108,045
  	Net cash from investing activities	$108,045
  	Net change in cash and cash equivalents	$1,728,113
  	Cash and cash equivalents, beginning of year	$2,379,906
  	Cash and cash equivalents, end of year	$4,324,109
  Reconciliation of cash and cash equivalents to the balance sheets
  	Cash and cash equivalents
  	In current assets	$5,166,428
  	In noncurrent cash and investments	$809,491
  	Total cash and cash equivalents	$5,975,919
  Reconciliation of operating loss to net cash from operating activities
  	Operating income	$861,828
  	Adjustments to reconcile operating income to net cash from operating activities:
  	Depreciation and amortization	$1,883,051
  	(Gain) loss on disposal of capital assets	($525)
  	Provision for bad debt	$1,281,107
  	Changes in assets and liabilities
  	Patient accounts receivable	($2,044,870)
  	Estimated third-party settlements	$1,199,971
  	Supplies and other current assets	$90,264
  	Other assets	($7,698)
  	Accounts payable and accrued expenses	$2,077,036
  	Other current liabilities	$57,535
  	Accrued salaries and related liabilities	($2,405,197)
  	Other long-term liabilities	($25,000)
  Net cash flows from operating activities		$2,967,502

2016

Operating income	$180,798

Acquisition and construction of capital assets

($401,572)

Proceeds from sale of capital assets

-

Interest paid on long-term debt

($48,036)

Payments on line of credit

($150,000)

Proceeds on long-term debt

$125,000

Principal payments on long-term debt

($352,225)

Cash and cash equivalents

In current assets

$1,739,826

In noncurrent cash and investments

$640,080

Total cash and cash equivalents

$2,379,906

Depreciation and amortization

$1,243,393

(Gain) loss on disposal of capital assets

$246,456

Provision for bad debt

$1,402,017

Changes in assets and liabilities

Patient accounts receivable

($717,771)

Estimated third-party settlements

$300,318

Supplies and other current assets

($221,648)

Other assets

$7,760

Accounts payable and accrued expenses

($364,752)

Other current liabilities

$77,440

Accrued salaries and related liabilities

$186,109

Other long-term liabilities

($35,000)

Investment and other nonoperating income	($103,893)
Net cash from investing activities	($103,893)
Net change in cash and cash equivalents	$1,374,394
Cash and cash equivalents, beginning of year	$1,005,512

Cash received from patients and third party payors $20,363,530

Cash paid to employees for salaries and benefits

($11,349,910)

Cash paid to vendors for goods and services

($7,724,464)

Other operating receipts, net

$1,015,964