2016 2015 Net Patient Revenue 120,000 110,000 Net Operating Revenue 80,000 65,000 Nonoperating income 4,000 3,000 Net Income 20,000 15,000 Cash provided by operating activities 25,000 22,000 Expenditures on property, plant and equipment 70,000 6,000 Current Assets 75,000 65,000 Net Patient Receivables 258,000 179,000 Current liabilities 50,000 45,000 Total Assets 220,000 190,000 Net Fixed Assets 78,000 84,000 Total Liabilities 150,000 145,000 Long term debt 9,578 11,720 What is the total profit margin 2016 and 2015? a. .30 and .28 b. .03 and .82 c. .68 and .89 d. none of the above
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
| 2016 | 2015 | |
| 2016 | 2015 | |
| Net Patient Revenue | 120,000 | 110,000 |
| Net Operating Revenue | 80,000 | 65,000 |
| Nonoperating income | 4,000 | 3,000 |
| Net Income | 20,000 | 15,000 |
| Cash provided by operating activities | 25,000 | 22,000 |
| Expenditures on property, plant and equipment | 70,000 | 6,000 |
| Current Assets | 75,000 | 65,000 |
| Net Patient Receivables | 258,000 | 179,000 |
| Current liabilities | 50,000 | 45,000 |
| Total Assets | 220,000 | 190,000 |
| Net Fixed Assets | 78,000 | 84,000 |
| Total Liabilities | 150,000 | 145,000 |
| Long term debt | 9,578 | 11,720 |
What is the total profit margin 2016 and 2015?
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