Unit 2 Problem 11 Balance Sheet.m4a
Problem 2-11 Ray Hospital
Please listen to my introduction and recording regarding this problem under the updates and Handouts section.
First, figure out what information you do have:
Gross plant, property, and equipment
$70,000,000
Accrued expenses
$6,000,000
Cash
$8,000,000
Net accounts receivable
$15,500,000
Accounts payable
$7,000,000
Long-term debt
$45,000,000
Supplies
$3,000,000
Accumulated depreciation
$5,000,000
Feel free to use the template below:
Ray Hospital
Balance Sheet
September 30, Year
9/30/20X1
9/30/20X1

9/30/20X1

9/30/20X1

Current Assets

Current liabilities

Cash

Accounts payable

Net accounts receivable

Accrued expenses

Supplies

Total current liabilities

Total current assets

Long-term debt

Gross plant, property, and equipment

Total liabilities

(less accumulated depreciation)

Net assets:

Net plant, property, and equipment

Total net assets

Total assets

Total liabilities and net assets

Second, start plugging in your assets and liabilities from the given information:
Ray Hospital
Balance Sheet
September 30, Year
9/30/20X1
9/30/20X1

9/30/20X1

9/30/20X1

Current Assets

Current liabilities

Cash

$8,000,000

Accounts payable

Net accounts receivable

15,500,000

Accrued expenses

Supplies

3,000,000

Total current liabilities

Total current assets

26,500,000

Long-term debt

Gross plant, property, and equipment

Total liabilities

(less accumulated depreciation)

Net assets:

Net plant, property, and equipment

Total net assets

Total assets

Total liabilities and net assets

Note: Non-profit healthcare organizations on their balance sheet should demonstrate unrestricted net assets, temporarily and permanently restricted net assets. However, in this problem, you will not have the information. Therefore, keep it basic, simply as Net Assets (one category) for this problem. For a non-profit organization: Assets – Liabilities = Net Assets.