8
Acc 506
Final Exam
Spring 2019
Part I 10 points 2/each
The entire exam is to be completed in Excel.
You can use the text box to answer Part 8
Be sure to show ALL TEXT BOX formulas
Add/Subtract/multiply and divide in Excel.
Add
123
321
454
764
351
Subtract
50000
-1500
-100
-321
-10
Multiply
100
X 10
Then add 13
Then subtract 32
-
Part II.
Prepare a Statement of Operations from the following relevant information: (10 points) (not all accounts may be used in solving this problem)
Cash
$300,000.00
Accounts Receivable
$116,850.00
Patient Receivable
$325,000.00
Patient Revenue
$10,000,000.00
Labo
$ 1,650,000.00
Wages Payable
$ 35,000.00
Inventory (asset)
$ 550,000.00
Inventory Expense
$ 110,000.00
Insurance Expense
$ 125,000.00
Accumulated Depreciation
$ 250,000.00
Depreciation Expense
$91,500.00
Premium Revenue
$200,000.00
Operating Revenue
$300,000.00
Interest Revenue
$25,000.00
Medical Supplies and Drugs
$123,000.00
Utility Expense
$631,000.00
Part III.
Prepare a Balance Sheet from the following relevant information. Not all accounts may be used in solving this problem. Be sure this statement is properly classified as to cu
ent and long terms (15 points)
Cash
$85,000,000.00
Patient Receivables
$15,000,000.00
Patient Revenue
$55,000,000.00
Prepaid Insurance
$1,500,000.00
Insurance Expense
$2, XXXXXXXXXX
Inventory (asset)
$4,555,000.00
Inventory Payable
$200,000.00
Plant and Equipment
$13,500,000.00
Depreciation Expense
$6,850,000.00
Accounts Payable
$ 3,250,000.00
Labo
$12,000,000.00
Mortgage Payable
$32,000,000.00
Net assets without restrictions
$8,650,000.00
Net assets with donor restrictions
??????????????????
Part IV. Prepare a Statement of cash flow for ABC Hospital using the DIRECT method. Not all accounts may be used in solving this problem (15 points)
Cash December 31, 2018
$65,000,000.00
Collection from Third Parties
$10,000,000.00
Payment of Mortgage
$1,500,000.00
Paid Ambulance loan
$1,800,000.00
Paid Employees
$2,650,000.00
Purchased stock of AAA
$ 500,000.00
Purchased bonds of BBB
$1,950,000.00
Purchased Stock of YYY Company
$130,000.00
Paid Insurance
$2,470,000.00
Paid Interest on bank loan
$ 81,000.00
Depreciation expense
$123,000.00
Cash December 31, 2019
?????????????
Part V.
Record the following transactions in the T account. You may copy the T accounts to your answer sheet (15 pts) 3 each
1. Purchased insurance for $40,000 paying cash
2. Purchased medical supplies of $500,000 paying cash
3. Collected $50,000 from patients paying cash
Part VI. Interpret the following journal entries (10 points)
Example
d
c
A
Accounts Payable
$10,000
Cash
$10,000
Answer: Paid $10,000 to a vendor for something that was purchased on account
1
Labo
$15,000
Cash
$15,000
Answe
2
Patient receivable
$20,000
Patient revenue
$20,000
Answe
3
Medical Supplies
$30,000
Accounts Payable
$30,000
Answe
4
Mortgage Payable
$40,000
Cash
$40,000
Answe
5
Building
$50,000
Mortgage Payable
$50,000
Answe
Part VII.
ABC Hospital purchased new operating room equipment for $50,000 on January 1, XXXXXXXXXXpoints)
The equipment has a 7-year life and a scrap value of $1,000.
Calculate the first 4 years of depreciation and book value using straight line, DDB and SYD methods.
Be sure to show all work.
Show your calculations here:
Straight line
DDB
SYD
Show your answers here:
Straight line depreciation:
Yea
Depreciation
Book Value
2019
2020
2021
2022
DDB
Yea
Depreciation
Book Value
2019
2020
2021
2022
SYD
Yea
Depreciation
Book Value
2019
2020
2021
2022
Part VII.
In a
ief essay explain the difference between common size, liquidity, and efficiency ratios. (10 points)