Balance Sheet Worksheet
Consider the following scenario:
Imagine you are a manager of a small health care facility and in charge of developing an annual balance sheet to help your stakeholders understand the organization's financial standing.
Your health care facilities figures are as follows:
Your facility has $700,000 cash on hand; $1,300,000 in accounts receivables; $175,000 in inventory; and $150,000 in supplies.
Your chief financial officer (CFO) has provided you with the following assets:
| Land value | $3,000,000 |
| Property value | $ 287,500 |
| Plant value | $ 287,500 |
| Investment income (loss) | $ 147,000 |
| Equipment value | $ 350,000 |
Your CFO has provided you with the following liabilities:
| Accounts payable | $1,400,000 |
| Wages payable | $ 480,000 |
| Taxes payable | $ 225,000 |
| Loans payable | $ 70,000 |
| Bonds payable | $ 68,000 |
Your CFO has provided you with the following owners equity:
| Retained earnings | $ 148,000 |
| Stock | $ 340,000 |
Using the ABC Health Care Balance Sheet template, complete a balance sheet in which you include the net profit (loss).
Write a 350- to 700-word executive summary that explains to the board of directors how you developed the balance sheet and its importance.
Include the following in your summary:
- Explain the process for creating a balance sheet.
- Explain the total assets, liabilities, and net worth (loss).
- Explain the use of profitability, liquidity, and debt ratios.
Cite at least 2 sources, including your textbook.
Format your assignment according to APA guidelines.
Click the Assignment Files tab to submit your assignment.
