You have been asked to attend the next meeting of the Board of Directors to explain, in everyday terms, the
Scenario:
You are the newly appointed CFO of ABC Hospital. You have been asked to attend the next meeting of the Board of Directors to explain, in everyday terms, the four different types of financial statements and what these statements mean in terms of the financial position of the hospital. The Board requests that you provide them with a written copy of your report, so they can refer to it in future financial discussions.
Your Assignment: Create a report including the following requirements:
Describe each of the four financial statements.
Include a sample of each type of financial statement.
Explain how each of the four financial statements reflects the financial position of the hospital.
Report should be double-spaced, using 12-point, Times New Roman font.
There are four components to a financial statement:
Balance Sheet
Income Statement
Statement of Cash Flows
Statement of Shareholder Equity or Equity Statements
Assets include the following:
Cash
Inventory
Accounts receivable
Building
Equipment
Purchase price
Depreciation
Liabilities include the following:
Accounts payable
Notes payable
Mortgage
