Please show a cash flow statement for the following prompt. Building a Financial

Question

Please show a cash flow statement for the following prompt.

Building a Financial Statement (Healthy Hospital) Please reference the balance sheet of Healthy Hospital dated 12/31/2016 at very bottom of this assignment. Create a Statement of Cash Flows for the year ending December 31, 2017 Healthy hospital has the following transactions for the calendar year ending 12/31/2017 1. Net Patient billings on account: (can do as one entry or 12) 50,000 60,000 70,000 80,000 50,000 40,000 50,000 40,000 i. September 50,000 40,000 k. November 35,000 l. December 50,000 a. January b. February c. March d. April e. May g. July h. August j. October 2. Cash collected on patient accounts receivable for the year $575,000 3. Payment of December 2016 wages payable of $6K 4. Payment of Accounts 5. Purchase of Equipment for $500K, paying S50K cash and a 5 year note of $450K 6. Interest expense on notes paid $12K 7. Purchase of investment (equity stocks) for $100K cash 8. Depreciation of property and equipment for the year of $40K 9. Purchase of 3-year insurance policy $12K 10. Yearly expense of insurance of $4K 11. Purchase of inventory on account for S50K 12. Use of inventory during the year $28K 13. Salary expense for January to November paid in cash $200K 14. Salary expense for December not paid in current year $15K 15. Payments on accounts payable for $30K 16. Equity investment is marked to market and increases in value by $25K 17. payable $34K Rent payments for the year $35K 18. Principal payments on Notes payable $45K

Explanation / Answer

Cash Flow Statement of Healthy Ltd for Year Ending 31/12/2017 $ $ Cash flow from Operating activities Cash Received From Patients 575000 Wages Paid for 2016 -6000 Accounts Payable Paid -34000 Payment for Insurance Policy -12000 Purchase of Inventory -50000 Salary Paid -200000 Accounts Payable Paid -30000 Rent Paid -35000 Total A 208000 Cash flow from Investing activities Purchase of Equipment -50000 Puchase of Investment -100000 Total B -150000 Cash flow from Financing activities Interest Expense on Notes -12000 Principal Payment of Notes -45000 Total C -57000 Opening Cash and Cash Equivalents 91000 Increase/(Decrease) in Cash and Cash Equivalents A+B+C 1000 Closing Cash and Cash Equivalents 92000

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