Escolar Documentos
Profissional Documentos
Cultura Documentos
OPERATING STATEMENTS
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
REVENUE:
Professional Services $ 678.2 $ 693.1 $ 704.9 $ 719.0 $ 732.7 $ 748.8 $ 763.8 $ 779.1 $ 794.6 $ 810.5 $ 826.7 $ 843.3 $ 9,094.7
Less: allowances and bad debts 135.6 138.6 141.0 143.8 146.5 149.8 152.8 155.8 158.9 162.1 165.3 168.7 1,818.9
NET REVENUE $ 542.6 $ 554.5 $ 563.9 $ 575.2 $ 586.2 $ 599.0 $ 611.0 $ 623.2 $ 635.7 $ 648.4 $ 661.4 $ 674.6 $ 7,275.8
EXPENSES:
Physician payments $ 110.2 $ 113.3 $ 118.0 $ 122.7 $ 125.9 $ 130.6 $ 141.6 $ 141.6 $ 141.6 $ 141.6 $ 141.6 $ 141.6 $ 1,570.3
Administrative salaries 57.5 61.6 61.6 65.7 65.7 73.9 73.9 73.9 73.9 73.9 73.9 73.9 829.4
Benefits 27.8 28.8 29.8 31.1 31.1 33.5 35.7 35.7 35.7 35.7 35.7 35.7 396.4
Medical Supplies 10.2 10.4 10.6 10.8 10.8 11.2 11.5 11.7 11.9 12.2 12.4 12.6 136.3
Rent and Utilities 43.6 43.6 43.6 43.6 43.6 43.6 43.6 43.6 43.6 43.6 43.6 43.6 523.2
Billing/collection fees 54.3 55.0 56.4 57.5 57.5 59.9 61.1 62.3 63.6 64.8 66.1 67.5 726.0
Equipment depreciation 2.0 2.0 2.0 2.4 2.4 2.4 2.6 2.6 2.6 2.9 2.9 2.9 29.7
Office expense 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 60.0
Liability insurance 101.7 104.0 105.7 107.9 107.9 112.3 114.6 116.9 119.2 121.6 124.0 126.5 1,362.2
Contracted services 10.6 10.6 10.6 10.6 10.6 10.6 10.6 10.6 10.6 10.6 10.6 10.6 127.2
Other 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 54.0
Contribution to Dean 59.7 61.0 62.0 63.3 64.5 65.9 67.2 68.6 69.9 71.3 72.8 74.2 800.4
$ 487.1 $ 499.8 $ 509.8 $ 525.1 $ 529.5 $ 553.4 $ 571.8 $ 576.9 $ 582.1 $ 587.7 $ 593.1 $ 598.6 $ 6,615.1
SURPLUS (DEFICIT) $ 55.5 $ 54.7 $ 54.1 $ 50.1 $ 56.7 $ 45.6 $ 39.2 $ 46.3 $ 53.6 $ 60.7 $ 68.3 $ 76.0 $ 660.7
BROOKSTONE OB/GYN ASSOCIATES
BALANCE SHEET
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
ASSETS:
Cash $ 44.30 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Accounts receivable (net) 1,932.2 2,025.0 2,105.3 2,171.5 2,223.0 2,279.5 2,336.0 2,395.4 2,455.9 2,518.1 2,580.5 2,644.1
Medical supply inventory 135.0 145.0 155.0 165.0 167.0 170.0 173.0 176.0 179.0 182.0 185.0 188.0
Prepaid insurance 275.0 300.0 320.0 320.0 330.0 340.0 340.0 340.0 340.0 340.0 340.0 340.0
Total Current Assets $ 2,386.5 $ 2,470.0 $ 2,580.3 $ 2,656.5 $ 2,720.0 $ 2,789.5 $ 2,849.0 $ 2,911.4 $ 2,974.9 $ 3,040.1 $ 3,105.5 $ 3,172.1
Equipment (net) 1,248.0 1,246.0 1,294.0 1,291.6 1,289.2 1,306.8 1,304.2 1,301.6 1,329.0 1,326.1 1,323.2 1,320.3
TOTAL ASSETS $ 3,634.5 $ 3,716.0 $ 3,874.3 $ 3,948.1 $ 4,009.2 $ 4,096.3 $ 4,153.2 $ 4,213.0 $ 4,303.9 $ 4,366.2 $ 4,428.7 $ 4,492.4
Surplus from Operating Statement 39.2 46.3 53.6 60.7 68.3 76.0
ADD BACK DEPRECIATION 2.6 2.6 2.6 2.9 2.9 2.9
CHANGE IN ASSETS:
Accounts receivable (56.5) (59.3) (60.5) (62.2) (62.4) (63.6)
Medical supply inventory will grow by 3,000 (3.0) (3.0) (3.0) (3.0) (3.0) (3.0)
Prepaid insurance - - - - - -
Equipment (30.0)
CHANGE IN LIABILITIES:
Accounts Payable Inceases 2% per month 1.7 1.7 1.8 1.8 1.8 1.9
Payable to Dean Beg Bal+11% Net Rev-11% Collections 6.2 6.5 6.7 6.8 6.9 7.0
Note payable 30,00 loan paid Sept - - (30.0) - - -
NET CASH FLOW CHANGE (9.8) (5.2) (58.9) 7.0 14.5 21.2
BEGINNING BANK LOAN BALANCE 218.8 228.6 233.8 292.7 285.7 271.2
ENDING BANK LOAN BALANCE 228.6 233.8 292.7 285.7 271.2 250.1
BROOKSTONE OB/GYN ASSOCIATES
T-ACCOUNTS FOR REVENUE AND EXPENSE TRANSACTIONS
Question 3
Management Control: The management has forecasted the financial aggregates for the remaining months of 2001. The mana
has forecasted these amounts by looking at the historic financial backgrounds and the historic financial trends of the hospital. O
basis of these values, forecasted financial statements are prepared to analyze the profitability of the hospital.
Strategy Formulation: On the other hand, it is clear that the bad debts of the hospital would also be increasing, which would
negatively affect the profitability of the hospital. In addition to this, the projections also show that the salaries of physicians wou
increase from $130,000 to $141,600 and would remain $141,600 for the entire year. This increase in salary is because of hiring
physicians in June 2001. Administrative salaries have also increased because of hiring new administrative staff.
Task Control: After the decision made by Mr. Mark Amsted of implementing the accrual basis accounting policy into the hospita
was delighted to see the drastic increase in revenue of the hospital in the early months of 2001. Later, he realized that the hosp
having serious cash flow problem as the credit line of $300000 was nearly exhausted at the end of June 2001.
cessary to collect the cash is
f credit requires covering the