Financial Reporting
Complete the provide Excel Income Statement by entering the supplied values for March and April. Once you have completed the entries on the Income Statement, use the totals to answer the following questions. When you upload your assignment, be sure to include this Word document and the completed Excel Income Statement
- What two types of financial information are shown on a Balance Sheet?
- What is the difference between the Balance Sheet and Income Statement?
- Using the Income Statement provided, input the following numbers for March 2018
- Gross Sales $210,000
- Sales Returns $100
- Beginning Inventory $7,500
- Inventory Purchases $3,000
- Ending Inventory $8,000
- Wages $15,000
- Travel $2,000
- Depreciation $1,500
- Insurance $1,500
- Office Supplies $800
- Rent $3,000
- Telephone $300
- What is the Net Sales Amount for March?
- What is the Cost of Goods Sold Amount for March?
- Total Expenses for March?
- Net Operating Income for March?
- Using the Income Statement provided, input the following values for April 2018
- Gross Sales $200,000
- Sales Returns $0
- Beginning Inventory $8,000
- Inventory Purchases $1,500
- Ending Inventory $5,500
- Wages $16,000
- Licenses & Fees – $3,500
- Depreciation $1,500
- Insurance $1,500
- Office Supplies $450
- Rent $3,000
- Telephone $275
- What is the Net Sales Amount for April?
- What is the Cost of Goods Sold Amount for April?
- Total Expenses for April?
- Net Operating Income for April?
Net Income: Revenue– Expenses
Net Sales: Gross Sales – Sales Returns and Allowances
Total Inventory: Beginning Inventory + Purchases
Cost of Goods Sold: Total Inventory – Ending Inventory
Gross Profit/Net Operating Income: (Net Sales – Cost of Goods Sold) – Total Expenses
Assets: Liabilities + Equity
Calculating gross profit for an organization does not provide the complete picture an organization’s financial health. Healthcare Administrators often review key financial information regarding the organization’s profit and losses. One representation of this information is found on the organization’s primary financial statements, the Income Statement, and the Balance Sheet. Often these financial statements are provided to a HCA by the organization’s accountant and understanding the information contained in these, and how it is calculated, is crucial to identifying potential issues and future opportunities.
Instructions
Use the Income Statement Questions Word document as you complete the Excel Income Statement by entering the supplied values from the Word document for March and April. Once you have completed the entries on the Income Statement, use the totals to answer questions on the Income Statement Questions Word document.
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Net Income: Revenue– Expenses
Net Sales: Gross Sales – Sales Returns and Allowances
Total Inventory: Beginning Inventory + Purchases
Cost of Goods Sold: Total Inventory – Ending Inventory
Gross Profit/Net Operating Income: (Net Sales – Cost of Goods Sold) – Total Expenses
Assets: Liabilities + Equity
Income Statement
Acme Healthcare Practice
[FY 2018] January February March April May June July August September October November December
Financial Statements in U.S. Dollars
Revenue
Gross Sales 150000 200000 0 0 0 0 0 0 0 0
Less: Sales Returns and Allowances 2012 550 0 0 0 0 0 0 0
Net Sales 147988 199450 0 0 0 0 0 0 0 0 0 0
Cost of Goods Sold
Beginning Inventory 10000 9000 0 0 0 0 0 0 0 0
Add: Purchases 2500 0 0 0 0 0 0 0 0 0
Freight-in
Direct Labor
Indirect Expenses
Inventory Available 12500 9000 0 0 0 0 0 0 0 0 0 0
Less: Ending Inventory 9000 7500
Cost of Goods Sold 3500 1500 0 0 0 0 0 0 0 0 0 0
Gross Profit (Loss) 144488 197950 0 0 0 0 0 0 0 0 0 0
Expenses
Advertising 100
Amortization
Bad Debts
Bank Charges
Charitable Contributions
Commissions
Contract Labor
Depreciation 1500 1500
Dues and Subscriptions
Employee Benefit Programs
Insurance 1500 1500
Interest
Legal and Professional Fees
Licenses and Fees
Miscellaneous
Office Supplies 400 550
Payroll Taxes
Postage
Rent 3000 3000
Repairs and Maintenance
Supplies
Telephone 200 225
Travel
Utilities
Vehicle Expenses
Wages 15000 15500
Total Expenses 21700 22275 0 0 0 0 0 0 0 0 0 0
Net Operating Income 122788 175675 0 0 0 0 0 0 0 0 0 0
Other Income
Gain (Loss) on Sale of Assets
Interest Income 250
Total Other Income 250 0 0 0 0 0 0 0 0 0 0 0
Net Income (Loss) 123038 175675 0 0 0 0 0 0 0 0 0 0