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Business Finance EBK HEALTHCARE FINANCE: AN INTRODUCTION

To compare: Statement of not-for-profit and profit entities. Since the problem is not specific about the statement requiring comparison, it is assumed that comparison must be drawn between entire set of financial statements. Financial statements presented by not-for profit and profit entities differ from each other in the following manner: Statement of financial position : Balance sheet is known as statement of financial position in case of not-for-profit entities, this follows the same structure for both the entities however, since not-for-profit entities are owner less trusts, there is no mention of equity in the statement and the difference in assets and liabilities are represented by ‘net assets’. Statement of activity: Income statement is known as statement of activity in case of not-for-profit entity since the primary objective of the entity is not to earn profits but to provide services to the society or community. Instead of presenting income like in case of for-profit entity, statement of activity shows funds coming into the organization and costs of operating the organization, the net effect is reflected as an addition to ‘net assets’. Statement of cash flows: Cash flow statement presented by not-profit entities is similar to the cash flow statement presented by for-profit entities and present similar description structure by dividing the cash flows in to operating, investing and financing. Statement of functional expenses: This is a unique statement presented by not-for-profit entities, the purpose of this statement is to categorize expenses into common categories in order to allow grasping of fund allocations, specially between funds which are spent for undertaking programs and funds spent on administration of the entity.

To compare: Statement of not-for-profit and profit entities. Since the problem is not specific about the statement requiring comparison, it is assumed that comparison must be drawn between entire set of financial statements. Financial statements presented by not-for profit and profit entities differ from each other in the following manner: Statement of financial position : Balance sheet is known as statement of financial position in case of not-for-profit entities, this follows the same structure for both the entities however, since not-for-profit entities are owner less trusts, there is no mention of equity in the statement and the difference in assets and liabilities are represented by ‘net assets’. Statement of activity: Income statement is known as statement of activity in case of not-for-profit entity since the primary objective of the entity is not to earn profits but to provide services to the society or community. Instead of presenting income like in case of for-profit entity, statement of activity shows funds coming into the organization and costs of operating the organization, the net effect is reflected as an addition to ‘net assets’. Statement of cash flows: Cash flow statement presented by not-profit entities is similar to the cash flow statement presented by for-profit entities and present similar description structure by dividing the cash flows in to operating, investing and financing. Statement of functional expenses: This is a unique statement presented by not-for-profit entities, the purpose of this statement is to categorize expenses into common categories in order to allow grasping of fund allocations, specially between funds which are spent for undertaking programs and funds spent on administration of the entity.

Solution Summary: The author compares the financial statements of not-for-profit and profit entities. The balance sheet is similar to the cash flow statement, but the difference in assets and liabilities is represented by 'net assets'.

EBK HEALTHCARE FINANCE: AN INTRODUCTION

EBK HEALTHCARE FINANCE: AN INTRODUCTION

6th Edition

ISBN: 9781567937428

Author: Gapenski

Publisher: YUZU

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Chapter 3, Problem 15.1STQ

Chapter 3, Problem 16.1STQ

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Chapter 3 Solutions

EBK HEALTHCARE FINANCE: AN INTRODUCTION

Ch. 3 - Prob. 1.1STQ Ch. 3 - Prob. 1.2STQ Ch. 3 - Prob. 2.1STQ Ch. 3 - Prob. 2.2STQ Ch. 3 - Prob. 2.3STQ Ch. 3 - Prob. 3.1STQ Ch. 3 - Prob. 3.2STQ Ch. 3 - Prob. 3.3STQ Ch. 3 - Prob. 3.4STQ Ch. 3 - Prob. 3.5STQ

Ch. 3 - Prob. 4.1STQ Ch. 3 - Prob. 4.2STQ Ch. 3 - Prob. 4.3STQ Ch. 3 - Prob. 5.1STQ Ch. 3 - Prob. 5.2STQ Ch. 3 - Prob. 5.3STQ Ch. 3 - Prob. 6.1STQ Ch. 3 - Prob. 6.2STQ Ch. 3 - Prob. 7.1STQ Ch. 3 - Prob. 7.2STQ Ch. 3 - Prob. 7.3STQ Ch. 3 - Prob. 8.1STQ Ch. 3 - Prob. 8.2STQ Ch. 3 - Prob. 8.3STQ Ch. 3 - Prob. 8.4STQ Ch. 3 - Prob. 9.1STQ Ch. 3 - Prob. 9.2STQ Ch. 3 - Prob. 9.3STQ Ch. 3 - Prob. 10.1STQ Ch. 3 - Prob. 10.2STQ Ch. 3 - Prob. 11.1STQ Ch. 3 - Prob. 11.2STQ Ch. 3 - Prob. 12.1STQ Ch. 3 - Prob. 12.2STQ Ch. 3 - Prob. 12.3STQ Ch. 3 - Prob. 13.1STQ Ch. 3 - Prob. 13.2STQ Ch. 3 - Prob. 13.3STQ Ch. 3 - Prob. 13.4STQ Ch. 3 - Prob. 14.1STQ Ch. 3 - Prob. 14.2STQ Ch. 3 - Prob. 14.3STQ Ch. 3 - Prob. 15.1STQ Ch. 3 - Prob. 15.2STQ Ch. 3 - Prob. 16.1STQ Ch. 3 - Prob. 16.2STQ Ch. 3 - Prob. 3.1Q Ch. 3 - Prob. 3.2Q Ch. 3 - Prob. 3.3Q Ch. 3 - Prob. 3.4Q Ch. 3 - Prob. 3.5Q Ch. 3 - Prob. 3.6Q Ch. 3 - Prob. 3.7Q Ch. 3 - Prob. 3.8Q Ch. 3 - Prob. 3.9Q Ch. 3 - Prob. 3.1P Ch. 3 - Prob. 3.2P Ch. 3 - Prob. 3.3P Ch. 3 - Prob. 3.4P Ch. 3 - Prob. 3.5P Ch. 3 - Prob. 3.6P Ch. 3 - Prob. 3.7P Ch. 3 - Prob. 3.8P Ch. 3 - Prob. 3.9P

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