Operating Activities Increase/decrease) in net assets Adjustments to reconcile increase (decrease) in net assets to net cash provided by operating activities Depreciation Net realized and unrealized gains on investments Donor-restricted investment income Provision for uncollectible accounts Loss on disposal of property and equipment Gain on capital gift Changes in operating assets and liabilities Patient accounts receivable (gross) Other receivables Inventory Prepaid expenses and other assets Prepaid pension asset Accounts payable and accrued expenses Accrued compensation and amounts withheld Unearned revenue Estimated third-party payer settlements tps openpage-ebooks. jblearning.com/wriviewer htmi?skipLastRead=truedoneTimePasscode=ST-5bbbdB27-2925-48a4-0fab-96 1817a585c6&launc. .. Year Ended December 31 2023 2022 $ (845035) s 3615619 569,654 2,561,982 (3,208,808) (34,000) 1,594,071 2,770,044 - (23,185) {550,000} - (6,379,379) (2,119,520) (177,286) 187,300 (736,244) (233,126) 467,588 - 1,001,373 {195,042) 15,164 7,424,155 (92,371) 1,950,000 - (909.900) 3 012124, 1:14 AM Chapler 18; Case StudyHappy Hospital - Putting Together the End-c-Year Financial Statements Net cash provided by operating activities Investing Activities Expenditures for property and equipment Proceeds from sales of property and equipment Purchases of investments, net Net cash used in investing activities Financing Activity Loan proceeds Loan repayment Donor-restricted investment income Net cash provided by financing activity Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Year Ended December 31 2023 2022 3522508 3130456 (784,000} (2,028,551) - 27,900 (464.803) 1,500,000 - (9,500) - = m 1490500 34, 4,229,098 699,000 TABLE 18.11 | Happy Hospital Financial Ratios for the Years 2023 and 2022 2023 2022 Liquidity Current ratio 1.60 2.89 Quick ratio 1.46 2.49 Days cash on hand 33.82 5.92 Efficiency Days in accounts receivable 97.56 67.04 Days in accounts payable 9.18 10.73 Average payment period 88.14 28.95 Total asset turnover 0.57 0.63 Solvency Interest coverage -12.48 NA Debt service coverage -2.95 NA Long-term debt to net assets 0.02 0.00 Profitability Total margin -0.02 0.06 Operating margin 0.03 -0.02 Return on assets 0.01 -0.01 Return on net assets -0.02 -0.01 TABLE 18.8 Happy Hospital Statement of Financial Position as of December 31, 2023 and 2022 December 31 2023 2022 Assets Current assets Cash and cash equivalents $ 5,033,429 $ 804,331 Patients receivable, net of allowances for uncollectibles 14,723,240 9,937,932 Inventory 1,047,044 1,234,344 Prepaid expenses and other assets 737,455 504,329 Total current assets 21,541,168 12,480,936 Assets limited as to use 55,732,204 55,732,204 Investments 1,639,529 1,639,529 Property and equipment, net 17,112,205 16,347,859 Prepaid pension asset 296,797 296,797 Total assets $ 96,321,903 $ 86,497,325 Liabilities and Net Assets Current liabilities Accounts payable and accrued expenses 1,406,266 $ 1,601,308 Accrued compensation and amounts withheld 9,823,520 2,399,365 Unearned revenue 1,950,000 Current portion of estimated third-party settlements 322,161 322,161 Total current liabilities 13,501,947 4,322,834 Estimated third-party settlements, less current portion 3,697,939 3,697,939 Long-term debt 1,490,500 Total liabilities 18,690,386 8,020,773 Net assets ://openpage-ebooks.jblearning.com/wr/viewer.html?skipLastRead=true&one TimePasscode=ST-5bbbd827-2925-48a4-9fab-961817a585c6&launc /24, 11:14 AM Chapter 18: Case Study-Happy Hospital - Putting Together the End-of-Year Financial Statements December 31 2023 2022 Without donor restrictions 76,632,973 77,478,008 With donor restrictions 998,544 998,544 Total net assets 77,631,517 78,476,552 Total liabilities and net assets $ 96,321,903 $ 86,497,325TABLE 18.9 Happy Hospital Statement of Operations as of December 31, 2023 and 2022 Year Ended December 31 2023 2022 Unrestricted Revenues Net patient service revenue $ $ 53,135,700 51,119,826 Other operating revenue 1,950,000 2.989.626 Total unrestricted revenues 55,085,700 54,109,452 Expenses Wages 52,134,681 47,325,259 Insurance 1,165,629 1,005,783 Inventory 954,000 1,275,524 Interest 62,700 0 Depreciation 569,654 2,561,982 Provision for uncollectible accounts 1,594,071 2,770,044 Total expenses 56,480,735 54.938,592 Gain/(loss) from Operations before adjustments to prior year third- (829,140) party payer settlements and pension expense in excess of plan (1,395,035) contribution Pension expense in excess of plan contribution (1,001,373) O Adjustments to prior year third-party payer settlements 329,626 Operating (loss) income (1,500,887) (1,395,035) Nonoperating gains Investment income 3,815,629 0 https://openpage-ebooks.jblearning.com/wr/viewer.html?skipLastRead=true&one TimePasscode=ST-5bbbd827-2925-48a4-9fab-961817a585c6&launc 2/4 10/2/24, 11:14 AM Chapter 18: Case Study-Happy Hospital - Putting Together the End-of-Year Financial Statements Year Ended December 31 2023 2022 Unrestricted gifts and bequests 33,654 550,000 Other miscellaneous income 195,363 Q Nonoperating gains 4,044,646 550,000 Excess of revenues and gains over expenses 2,543,759 (845,035) Other changes in net assets without/with donor Changes in net unrealized gain on investments 966,956 Increase in unrestricted net assets (845,035) 3.510,715