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Metropolis Health System Balance Sheet March 31, 20X3 and 20X2 Assets Current As

ID: 2558574 • Letter: M

Question

Metropolis Health System Balance Sheet March 31, 20X3 and 20X2

Assets

Current Assets

   Cash and cash equivalents

$1,150,000

$400,000

   Assets whose use is limited

825,000

825,000

   Patient accounts receivable

8,700,000

8,950,000

   Less allowance for bad debts

(1,300,000)

(1,300,000)

   Other receivables

150,000

100,000

   Inventories of supplies

900,000

850,000

   Prepaid expenses

200,000

150,000

Total Current Assets

10,625,000

9,975,000

Assets Whose Use Is Limited

   Corporate funded depreciation

1,950,000

1,800,000

   Under bond indenture agreements—held by trustee

1,425,000

1,475,000

Total Assets Whose Use Is Limited

3,375,000

3,275,000

Less Current Portion

(825,000)

(825,000)

Net Assets Whose Use Is Limited

2,550,000

2,450,000

Property, Plant, and Equipment, Net

19,300,000

19,200,000

Other Assets

325,000

375,000

Total Assets

$32,800,000

$32,000,000

Metropolis Health System Balance Sheet March 31, 20X3 and 20X2

Liabilities and Fund Balance

Current Liabilities

   Current maturities of long-term debt

$525,000

$500,000

   Accounts payable and accrued expenses

4,900,000

5,300,000

   Bond interest payable

300,000

325,000

   Reimbursement settlement payable

100,000

175,000

Total Current Liabilities

5,825,000

6,300,000

Long-Term Debt

6,000,000

6,500,000

Less Current Portion of Long-Term Debt

(525,000)

(500,000)

Net Long-Term Debt

5,475,000

6,000,000

Total Liabilities

11,300,000

12,300,000

Fund Balances

   General Fund

21,500,000

19,700,000

Total Fund Balances

21,500,000

19,700,000

Total Liabilities and Fund Balances

$32,800,000

$32,000,000

Metropolis Health System Statement of Revenue and Expenses for the Years Ended March 31, 20X3 and 20X2

Revenue

   Net patient service revenue

$34,000,000

$33,600,000

   Other revenue

1,100,000

1,000,000

Total Operating Revenue

35,100,000

34,600,000

Expenses

   Nursing services

5,025,000

5,450,000

   Other professional services

13,100,000

12,950,000

   General services

3,200,000

3,220,000

   Support services

8,300,000

8,340,000

   Depreciation

1,900,000

1,800,000

   Amortization

50,000

50,000

   Interest

325,000

350,000

   Provision for doubtful accounts

1,500,000

1,600,000

Total Expenses

33,400,000

33,760,000

Income from Operations

1,700,000

840,000

Nonoperating Gains (Losses)

   Unrestricted gifts and memorials

20,000

70,000

   Interest income

80,000

40,000

Nonoperating Gains, Net

100,000

110,000

Revenue and Gains in Excess of Expenses and Losses

$1,800,000

$950,000

Metropolis Healtd System Statement of Changes in Fund Balance for tde Years Ended March 31, 20X3 and 20X2

General Fund Balance April 1st

$19,700,000

$18,750,000

Revenue and Gains in Excess of Expenses and Losses

1,800,000

950,000

General Fund Balance March 31st

$21,500,000

$19,700,000

Metropolis Health System Schedule of Property, Plant, and Equipment for the Years Ended March 31, 20X3 and 20X2

Buildings and Improvements

$14,700,000

$14,000,000

Land Improvements

1,100,000

1,100,000

Equipment

28,900,000

27,600,000

   Total

44,700,000

42,700,000

Less Accumulated Depreciation

(26,100,000)

(24,200,000)

   Net Depreciable Assets

18,600,000

18,500,000

Land

480,000

480,000

Construction in Progress

220,000

220,000

Net Property, Plant, and Equipment

Identify the following MHS Balance Sheet components (listed below numbers 1 - 8). List the name of each component and its amount(s) from the appropriate MHS financial statement

Current Liabilities

Total Assets

Income from Operations

Accumulated Depreciation

Total Operating Revenue

Current Portion of Long-Term Debt

Interest Income

Inventories

Components of Balance Sheet and Statement of Net Income.

Item Current Year Prior Year.   

$19,300,000

$19,200,000

Metropolis Health System Balance Sheet March 31, 20X3 and 20X2

Assets

Current Assets

   Cash and cash equivalents

$1,150,000

$400,000

   Assets whose use is limited

825,000

825,000

   Patient accounts receivable

8,700,000

8,950,000

   Less allowance for bad debts

(1,300,000)

(1,300,000)

   Other receivables

150,000

100,000

   Inventories of supplies

900,000

850,000

   Prepaid expenses

200,000

150,000

Total Current Assets

10,625,000

9,975,000

Assets Whose Use Is Limited

   Corporate funded depreciation

1,950,000

1,800,000

   Under bond indenture agreements—held by trustee

1,425,000

1,475,000

Total Assets Whose Use Is Limited

3,375,000

3,275,000

Less Current Portion

(825,000)

(825,000)

Net Assets Whose Use Is Limited

2,550,000

2,450,000

Property, Plant, and Equipment, Net

19,300,000

19,200,000

Other Assets

325,000

375,000

Total Assets

$32,800,000

$32,000,000

Explanation / Answer

(1) Current Liabilities in the books of MHS on 31st March, 20X3 and 20X2 Particulars 20X3 20X2 Current maturities of long-term debt $525,000 $500,000 Accounts payable and accrued expenses $4,900,000 $5,300,000 Bond interest payable $300,000 $325,000 Reimbursement settlement payable $100,000 $175,000 Total Current Liabilities $5,825,000 $6,300,000 (2) Total Assets in the books of MHS on 31st March, 20X3 and 20X2 Particulars Total Current Assets $10,625,000 $9,975,000 Net Assets whose use is limited $2,550,000 $2,450,000 Property, Plant, and Equipment, Net $19,300,000 $19,200,000 Other Assets $325,000 $375,000 Total Assets $32,800,000 $32,000,000 (3) Income from Operations in the books of MHS on 31st March, 20X3 and 20X2 20X3 20X2 Revenue    Net patient service revenue $34,000,000 $33,600,000    Other revenue 1,100,000 1,000,000 Total Operating Revenue 35,100,000 34,600,000 Expenses    Nursing services 5,025,000 5,450,000    Other professional services 13,100,000 12,950,000    General services 3,200,000 3,220,000    Support services 8,300,000 8,340,000    Depreciation 1,900,000 1,800,000    Amortization 50,000 50,000    Interest 325,000 350,000    Provision for doubtful accounts 1,500,000 1,600,000 Total Expenses 33,400,000 33,760,000 Income from Operations 1,700,000 840,000 (4) Accumulated Depreciation in the books of MHS on 31st March, 20X3 and 20X2 20X3 20X2 Total Accumulated Depreciation -26,100,000 -24,200,000 (5) Total Operating Revenue in the books of MHS on 31st March, 20X3 and 20X2 20X3 20X2 Income from Operations 1,700,000 840,000 Nonoperating Gains (Losses)    Unrestricted gifts and memorials 20,000 70,000    Interest income 80,000 40,000 Nonoperating Gains, Net 100,000 110,000 Revenue and Gains in Excess of Expenses and Losses $1,800,000 $950,000 (6) Current Portion of Long-Term Debt in the books of MHS on 31st March, 20X3 and 20X2 20X3 20X2 Current Portion of Long-Term Debt -525,000 -500,000 (7) Interest Income in the books of MHS on 31st March, 20X3 and 20X2 20X3 20X2 Interest income 80,000 40,000 (8) Inventories in the books of MHS on 31st March, 20X3 and 20X2 20X3 20X2 Inventories of supplies 900,000 850,000