Review the Week 7 Assignment document provided to you by the Instructor. Examine the data from the medical center described in the document. Reflect on how you will use this data to develop a balance sheet, profit and loss statement (statement of operations), and cash flow statement (statement of changes in net assets). Refer to the course text for additional guidance.
The Assignment:
Complete a balance sheet, profit and loss statement (statement of operations), and cash flow statement (statement of changes in net assets) using the “Week 7 Financial Statement Excel Template”.
Expert Solution Preview
Introduction:
As a medical professor responsible for creating college assignments and answers for medical college students, it is essential to provide relevant and practical assignments that prepare students for real-world scenarios. In this context, the Week 7 Assignment document provides an opportunity to use real data from a medical center to develop financial statements, which is crucial knowledge for students pursuing administrative roles in healthcare organizations.
Answer:
To develop a balance sheet, profit and loss statement, and cash flow statement using the provided financial statement excel template, it is crucial to understand the purpose and components of each statement.
The balance sheet represents the financial position of an organization by listing assets, liabilities, and equity at a specific point in time. To complete the balance sheet using the provided template, the medical center’s assets and liabilities should be listed in the appropriate place. For instance, cash, accounts receivable, and inventory are listed under assets, while accounts payable, salaries payable, and taxes payable are considered liabilities. The difference between assets and liabilities represents equity.
The profit and loss statement, also known as the statement of operations or income statement, shows an organization’s revenue, expenses, and net income or loss over a specific period. To develop the statement of operations using the provided template, the medical center’s revenue from services offered, such as laboratory tests, procedures, and consultations, should be listed under the revenue section. The expenses, such as salaries, supplies, and rent, should be listed appropriately – the difference between revenue and expenses represents net income or net loss.
Lastly, the cash flow statement provides information about the cash flow of an organization by indicating the sources and uses of cash over a specific period. Using the provided template, the medical center’s cash inflows and outflows are listed under the appropriate heading, such as operating activities, investing activities, and financing activities. The difference between cash inflows and outflows provides the net cash flow.
In conclusion, using the Week 7 Assignment document to develop financial statements using the provided excel template is an excellent opportunity for medical students pursuing administrative roles to gain practical knowledge and skills. Developing the statements requires an understanding of each statement’s components and purpose, as well as careful review of the data provided in the document.
