Community Benefit Spending, Balance Sheet Entries, and Statement of Operations
The last section will cover the financial management aspect of your organization/facility. Merge your information from the Case Assignment 1, 2, 3 and begin working on your last section. Remember, this is a developing project.
***Meaning that all information must be based on the Trust Hospice Service created for case assignment 1, 2 and 3 because is a continuation***
Case Assignment
1. Community Benefit Spending
* In at least 1 page, identify how your non-profit organization will spend money helping your community.
2. Balance Sheet (Norwicki, 2018, pp. 51-54)
* Create a hypothetical (realistic) balance sheet for your organization/facility. The balance sheet should cover two years, the current year and the subsequent year. The balance sheet should show a vivid increase in total net assets.
* Explain the entries in your balance sheet.
* Calculate your Assets for both years.
3. Statement of Operations (Norwicki, 2018, pp. 54-57)
* Create a hypothetical (realistic) statement of operations for your organization/facility. The statement of operations should cover two years, the current year and the subsequent year.
* Calculate the Operating Margin and explain your result.
4. Strategic Planning, Operational Planning, & Budgeting (Norwicki, 2018, pp. 299-326)
* Norwikci (2018) outlined a 22-stage Corporate Planning Process (Exhibit 13.1, pp. 299-300). Review the process outlined and identify how your organization/facility has met/will meet the stages outlined in the following sections:
* Strategic Planning (Stages 1-8)
* Operational Planning (Stages 9-13)
* Budgeting (Stages 14-17)
5. Recommendations and Conclusion
Assignment Expectations
1. Conduct additional research to gather sufficient information to justify/support your analysis.
2. Case papers should be at least 5 pages, not including the title and reference pages. (Final Submission: 20 pages—5 pages per module.)
3. Support your paper with peer-reviewed articles with at least 5 references. (Final Submission: 20 references—5 references per module.)
Use the following link for additional information on how to recognize peer-reviewed journals:
* Angelo State University Library. (n.d.). Library guides: How to recognize peer-reviewed (refereed) journals. Retrieved from https://www(dot)angelo(dot)edu/services/library/handouts/peerrev.php
4. You may use the following source to assist in formatting your assignment:
* Purdue Online Writing Lab. (n.d.). General APA guidelines. Retrieved from https://owl(dot)english(dot)purdue(dot)edu/owl/resource/560/01/
5. For additional information on reliability of sources, review the following source:
* Georgetown University Library. (n.d.). Evaluating internet resources. Retrieved from https://www(dot)library(dot)georgetown(dot)edu/tutorials/research-guides/evaluating-internet-content
Financial Management
Name
Department
Course
Instructor
Due Date
Financial Management
1 Community Benefit Spending
Trust Hospice Service spending on community benefit would target community health improvement, including providing care to low-income individuals and householders. Community benefit expenditure improves health outcomes and health safety. Community benefit spending also targets community health improvement advocacy, training, and community support. Training the health practitioners supports improving leadership skills making it easier for the community members to work together to improve community health and address local community needs (Chaiyachati, Qi & Werner, 2018). Local health improvement initiatives, subsidized health services, and health research are some of the community benefits that are part of community health improvement.
Community health-promoting activities supported by subsidized services would also improve access to services, and some families would get the cost burden of paying for hospice and palliative services lowered. Nurses and other healthcare professionals should develop advocacy skills to improve community health outcomes and effective policies. Thus expenditure will prioritize community needs, with health practitioners with experience in community health services actively involved in care delivery. Health practitioners are part of the solution in promoting the organization’s community-building activities. Evaluating community health services and needs is necessary to address community priorities besides hospice and palliative care services, including complex health needs.
Community benefit expenditures not only focus on health promotion. They also link research community health outcomes and quality improvement to benefit communities. The delivery of community health services is linked with community involvement. There are initiatives to sensitize the community on interventions to improve peephole well-being and how services offered at the facility meet patient and family needs. Furthermore, encouraging community members to participate in health education initiatives will be crucial to adapt practices. Addressing diverse patients’ preferences and interests requires a good understanding of community members' needs.
2. Balance Sheet
Projected Balance Sheet
for the year ended December 31
2022
2023
Cash
950,000
1,550,000
Accounts Receivable
40,000
38,000
Inventory
25,500
26700
Prepaid expenses
Other Current Assets
31,000
31000
Total Current Assets
1,046,500
1,645,700
Long-Term Assets
Land, buildings, and equipment
$750,000
$750,000
Accumulated Depreciation
($62,500)
($125,000)
Vehicles
$75,000
$75,000
Total Long-Term Assets
$762,500
$700,000
Total Assets
$1,809,000
$2,345,700
Accounts Payable
56,000
57,500
Notes Payable
Income Taxes Payable
21,500
17,400
Sales Taxes Payable
Short-Term Debt
40,100
41,500
Prepaid Revenue
Total Current Liabilities
117,600
116,400
Long-Term Debt
473,400
420,300
Long-Term Liabilities
300,000
250,000
Total Liabilities
417,600
366,400
Paid-In Capital
200,000
200,000
Retained Earnings
Earnings
1,018,000
1,609,000
Total Owner’s Equity
Total liabilities and
net assets
$1,809,000
$2,345,700
A balance sheet is a statement of a company's financial position at specific times and in the case of Trust Hospice Service or the financial years 2022 and 2023. The balance sheet shows assets that generate money, and liabilities are the debts and obligations plus the net assets. Assets are either current assets (short-term) or long-term (non-current). The balance of the total assets is equal to that of the Total liabilities and net assets at $1,809,000 in 2022 and projected to be $2,345,700 in 2023.
For the year ended December 31, 2020, cash is the biggest current asset at $ 950,000 and is projected to increase to $ 1,550,000 the following year. There are no prepaid expenses, but there is an assumption the expenses will increase in the future. The accounts receivable (debtors) are $ 40,000 and $ 38,000 respectively for the two years, while the inventory is $ 25,500 and $ 26 700. The total current asset in FY 2022 is projected as $1,046,500 and $1,645,700 the following year.
3. Statement of Operations
Statements of Operations
for the year ended December 31
2022
2023
Gross patient services revenues:
Daily patient services
1,200,000
1,750,000
Other professional services
900,000
1,100,000
Gross patient services revenues
2,100,000
2,850,000
Less deductions from patient services revenues
($210,000)
($285,000)
Net patient services revenues
1,890,000
2,565,000
Other operating revenues
120,000