Use the following information about Hospital X to create a statement of cash flo
ID: 123599 • Letter: U
Question
Use the following information about Hospital X to create a statement of cash flows: (review chapter 12, page 377 for an example) book fundamentals of healthcare finance second edition
2012
2011
Purchase of Property and Equipment
($30)
($25)
Securities Purchases
($30)
($25)
Contributions
$10
$10
Cash Received from Patient Services
$3,985
$4,550
Cash Paid to Employees and Suppliers
($3,900)
($4,500)
Cash and Equivalents, Beginning of the Year
$20
Interest Paid
($15)
($16)
Interest Earned
$5
$12
Repayment of Long-term Debt
($2)
($12)
2012
2011
Purchase of Property and Equipment
($30)
($25)
Securities Purchases
($30)
($25)
Contributions
$10
$10
Cash Received from Patient Services
$3,985
$4,550
Cash Paid to Employees and Suppliers
($3,900)
($4,500)
Cash and Equivalents, Beginning of the Year
$20
Interest Paid
($15)
($16)
Interest Earned
$5
$12
Repayment of Long-term Debt
($2)
($12)
Explanation / Answer
HOSPITAL X
STATEMENT OF CASH FLOW
FOR YEAR 2011
Cash and equivalents at the beginning of the year $ 20
Cash received through contributions $ 10
Net Cash in hand $ 30
Cash flows from operations
Cash received from patient services $ 4550
Cash paid to employees and suppliers ($ 4500)
Net cash $ 50
Cash flow from investing activities
Purchase of property and equipment ($ 25)
Securities purchases ($ 25)
Net cash used in investing ($ 50)
Cash flow from financing activities
Interest Earned $ 12
Interest Paid ($ 16)
Payment on long term debt ($ 12)
Net cash used in financing activities ($ 16)
NET INCREASE (DECREASE) IN CASH $ 14
HOSPITAL X
STATEMENT OF CASH FLOW
FOR YEAR 2012
Cash and equivalents at the beginning of the year $ 14
Cash received through contributions $ 10
Net Cash in hand $ 24
Cash flows from operations
Cash received from patient services $ 3985
Cash paid to employees and suppliers ($ 3900)
Net cash $ 85
Cash flow from investing activities
Purchase of property and equipment ($ 30)
Securities purchases ($ 30)
Net cash used in investing ($ 60)
Cash flow from financing activities
Interest Earned $ 5
Interest Paid ($ 12)
Payment on long term debt ($ 2)
Net cash used in financing activities ($ 9)
NET INCREASE (DECREASE) IN CASH $ 40
Ending Cash Balance for Hospital X at the end of Year 2012 is $40
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