Health care finance Balance sheet

Healthcare finance: Balance sheet

Healthcare finance: Balance sheet

Balancesheet is one of the financial statements prepared to show thefinancial status of the company at the end of every financial year.Balance sheet has three major components, which include liabilities,assets, and shareholders equity (Accounting Tools, 2014). Balancingthe three components health the finance manager and users of thefinancial statements understand what the company owes and owns at theend of a given financial year. A standard balance sheet adheres tothe formula

Assets= liabilities + shareholders’ equity

Thispaper contains a balance sheet of Carrie Hospital for the year endedDecember 31, 2013.

CurrieHospital

BalanceSheet

Forthe Year ended

Assets

Currentassets

Inventories 100,000

Netaccount receivable 650,000

Cash 210,000

TotalCurrent assets 960,000

FixedAssets

Netplant and equipment 5,800,000

Totalfixed assets 5,800,000

TotalAssets 6,760,000

Liabilities

Currentliabilities

Accountspayable 130,000

Accruedexpenses 100,000

Othercurrent liabilities 70,000

Totalcurrent liabilities 300,000

Long-termliabilities

Long-termdebt 5,000,000

TotalLong-term liabilities 5,000,000

Totalliabilities 5,300,000

NetAssets 1,460,000

Owners’equity 1,460,000

Notes:

Sincethe two sides of the balance sheet account should give equal figures,the balancing figure in the case of Currie Hospital is the owners’equity. Owners’ equity is obtained by subtracting total liabilities(both current and long-term liabilities) from the total assets(current assets plus fixed assets). In the fixed assets sections, thevalue of net Plant and equipment was obtained by subtractingaccumulated depreciation from the value of gross plant and equipment.This is because only the net value of assets as at the end of theyear should be recorded in the statement of the financial position.

Reference

AccountingTools (2014). The balance sheet. AccountingTools.Retrieved January 18, 2015, fromhttp://www.accountingtools.com/balance-sheet