Assignment 10-1: Components of Balance Sheet and Statement of Net Income Refer to the Metropolis Health System (MHS) financial statements contained in Appendix 28-A below. Use the MHS comparative balance sheet, statement of revenue and expenses, and statement of fund balance for this assignment. APPENDIX 28-A Metropolis Health System’s Financial Statements and Excerpts from Notes Metropolis Health System Balance Sheet March 31, 20X3 and 20X2 Assets Current Assets Cash/Cash Equivalent $1,150,000 $400,000  Assets whose use is limited $825,000 $825,000 Patient Accts Receivable $8,700,000 $8,950,000 Less Allowance for Bad Debts (1,300,000) (1,300,000) Other Receivables 150,000 100,000 Inventories of Supplies 900,000 850,000 Prepaid Expenses 200,000 150,000 Total Current Assets 10,625,000 9,975,000 Assets Whose Use Is Limited Corporate funded depreciation 1,950,000 1,800,000 Under bond indenture agreements—held by trustee 1,425,000 1,475,000 Total Assets Whose Use Is Limited 3,375,000 3,275,000 Less Current Portion (825,000) (825,000) Net Assets Whose Use Is Limited 2,550,000 2,450,000 Property, Plant, and Equipment, Net 19,300,000 19,200,000 Other Assets 325,000 375,000 Total Assets $32,800,000 $32,000,000 Identify the following MHS balance sheet components. List the name of each component and its amount(s) from the appropriate MHS financial statement. Current Liabilities Total Assets Income from Operations Accumulated Depreciation Total Operating Revenue Current Portion of Long-Term Debt Interest Income Inventories Doctors Smith and Brown: Statement of Net Income for the Three ...

1. Assignment 10-1: Components of Balance Sheet and Statement
of Net Income
Refer to the Metropolis Health System (MHS) financial
statements contained in Appendix 28-A below. Use the MHS
comparative balance sheet, statement of revenue and expenses,
and statement of fund balance for this assignment.
APPENDIX 28-A Metropolis Health System’s Financial
Statements and Excerpts from Notes
Metropolis Health System Balance Sheet March 31, 20X3 and
20X2
Assets
Current Assets
Cash/Cash Equivalent
$1,150,000 $400,000
Assets whose use is limited
$825,000 $825,000
Patient Accts Receivable
$8,700,000 $8,950,000
Less Allowance for Bad Debts
(1,300,000) (1,300,000)
Other Receivables
150,000 100,000
Inventories of Supplies
900,000 850,000
Prepaid Expenses
200,000 150,000
Total Current Assets
10,625,000 9,975,000
Assets Whose Use Is Limited
Corporate funded depreciation
1,950,000 1,800,000
Under bond indenture agreements—held by trustee
1,425,000 1,475,000
Total Assets Whose Use Is Limited

2. 3,375,000 3,275,000
Less Current Portion
(825,000) (825,000)
Net Assets Whose Use Is Limited
2,550,000 2,450,000
Property, Plant, and Equipment, Net
19,300,000 19,200,000
Other Assets
325,000 375,000
Total Assets
$32,800,000 $32,000,000
Identify the following MHS balance sheet components. List the
name of each component and its amount(s) from the appropriate
MHS financial statement.
Current Liabilities
Total Assets
Income from Operations
Accumulated Depreciation
Total Operating Revenue
Current Portion of Long-Term Debt
Interest Income
Inventories
Doctors Smith and Brown: Statement of Net Income for the
Three Months Ended March 31, 2___
Revenue
Net patient service revenue
180,000
Other Revenue
-0-
Total Operating Revenue
180,000
Expenses
Nursing/PA Salaries
16,650
Clerical Salaries
10,150

3. Payroll taxes/employee benefits
4,800
Medical supplies & drugs
15,000
Professional fees
3,000
Dues & publications
2,400
Janitorial service
1,200
Office supplies
1,500
Repairs & Maintenance
1,200
Utilities & Telephone
6,000
Depreciation
30,000
Interest
3,100
Other
5,000
Total Expenses
100,000
Income from Operations
80,000
Nonoperating gains (Losses) Interest Income
-0-
Nonoperating gains, Net
-0-
Net Income
80,000
Doctors Smith and Brown Balance Sheet March 31, 2___
Assets
Current Assets
Cash & Cash Equivalents

4. 25,000
Patient Account Receivables
40,000
Inventories-supplies/drugs
5,000
Total Current Assets
70,000
Property, Plant, Equipment
Bldgs & Improvements
500,000
Equipment
800,000
Total
1,300,000
Less Accumulated Depreciation
(480,000)
Net Depreciable Assets
820,000
Land
100,000
Property, Plant, Equipment Net
920,000
Other Assets
10,000
Total Assets
1,000,000
Liabilities & Capital
Current Liabilities
Current maturities of long-term debt
10,000
Accts Payable & Accrued
20,000
Expenses
Total Current Liabilities
30,000
Long Term Debt

5. 180,000
Less Current Portion of Long-Term Debt
(10,000)
Net Long-Term Debt
170,000
Total Liabilities
200,000
Capital
800,000
Total Liabilities & Capital
1,000,000
Doctors Smith and Brown Statement of Changes in Capital for
the Three Months Ended March 31, 2___
Beginning Balance
$720,000
Net Income
80,000
Ending Balance
$800,000