Discussion of Finance Health Care (Essay Sample)

Student’s Name:
Instructor’s Name:
Course Code & Name:
Date of Submission:
Topic 1 - Exercise 1.xlsx
Topic 7 Exercise 1 – Matrix



Accounts

Asset / Liability/Equity

Current / Non-current

Cheque Account - at bank (in funds)

Asset

Current

Term Deposit - 12months to maturity

Asset

Non-current

insurance - prepaid for 6 months

Asset

Current

Loan from bank to be repaid inside 6 months

Liability

Current

Amount due from Medicare

Asset

Current

Sale of shares to new Doctor

Equity

Non-current

Employee annual leave entitlement

Liabilities

Current

Amount due to surgical glove supplier

Liability

Current

New computer

Asset

Non-current

Revaluation of building

Equity

Current

Question 1B, Exercise 2
1 Nature of organization: Service provider
2 Assets and liabilities

Asset

Liabilities

1

Building

2 years loan

2

Furniture

Accrued insurance

3

Computers

Payables

4

Vehicles

Accrued salary

5

x-ray machine

Current Tax

3 Equity;
* Revaluation reserve
* Retained profit
* Ordinary share capital
* Share premium capital
Question 1C
Topic 1 - Exercise 3.xlsx
Topic 7 Exercise 3 – Matrix




Accounts

Statement



Prepayments

Statement of financial position, profit and loss



Cash at Bank

Statement of financial position and statement of cash flow



Patient Fee Income

Profit and loss



Interest Received

Profit and loss



Proceeds from Borrowings

Statement of financial position and statement of cash flow



Trade Creditors

Statement of financial position and statement of cash flow(increase or decrease)



Provision for Annual Leave

Statement of financial position



Asset Revaluation Reserve

Statement of financial position



Interest Paid

Profit and loss and statement of cash flow



Wages and Salaries Expense

Profit and loss



Purchases of Plant and Equipment

Statement of financial position and statement of cash flow



Profit or Loss on Sale of Assets

Profit and loss and statement of cash flow



Proceeds from Borrowing

Statement of financial position and statement of cash flow



Rent Expense Dividend Paid

Profit and loss



Question 2
The system used in our organization is very sophisticated in a way that I only record few variables and the system updates itself automatically. Records that needs adjustments are ledgers and patient receipt i.e. cash book ledger, wages and salaries, equipment, creditors and patient receipt, service cost and bed occupation. The entries that are automatically generated by the system include income statement, statement of financial position, cash flow, budget, financial indicators. From automatically formulated statements, I am supposed to make notes monthly about the monthly statements, which is approved by the chief financial officer of the hospital. This conform international financial regulatory framework (Nowicki and Berger, 2006).
Question 3, Case Study
Current ratio =current asset current liability
= 875,720 694,504 =985,084 562,962 =1,003,603 433,519
=1.26=1.75=2.32
Quick ratio = current asset-stock current liability
Or
= Cash at Bank + Marketable Securities + Net Receivables Current Liabilities - Bank Overdraft
= 375,534+476,986 694,504-127,875 = 563,730+387,654 562,962-76,543 = 607,859+ 347,944347,944
=1.50=1.96=2.75
Debtors Turnover = credit ...