Posted: April 20th, 2022

NNS Hospitals Ltd. is a publicly owned company which owns a chain of hospitals

MGT 278C Assignment 1
NNS Hospitals Ltd. is a publicly owned company which owns a chain of hospitals. The Balance Sheet of NNS as of 31/3/2015 – Research Paper Writing Help Service is given below:
Liabilities and Owners’ Equity
Accounts Payable 120,000
Salaries Payable 10,000
Provision for Taxes (2013-14) 90,000
Provision for Taxes (2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay-15) 100,000
8% Bank Loan 160,000
Share Capital 400,000
Share Premium 200,000
Retained Earnings 20,000
TOTAL 1,100,000

Assets
Cash 80,000
Inventories of Medical Supplies 120,000
Accounts Receivable 100,000
Less: Allowance for Doubtful Debts -5,000 95,000
Advance Taxes Paid (2013-14) 95,000
Advance Taxes Paid (2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay-15) 100,000
Prepaid Insurance 20,000
Investments in 10% Government Bonds 200,000
Land 150,000
Building 200,000
Less: Accumulated Depreciation -20,000 180,000
Equipment 100,000
Less: Accumulated Depreciation -40,000 60,000
TOTAL 1,100,000

Majority of the cash payments and receipts made during the year are given below:
Cash Receipts Cash Payments
Total Cash Collected from Patients 700,000 Cash Paid for Staff Salaries 110,000
Interest Received on Govt. Bonds 20,000 Cash Paid for Accounts Payable 300,000
Sale of Equipment (31/12/2015 – Research Paper Writing Help Service) 15,000 Cash Paid for Utilities 50,000
Dividends received 5,000 Loan Repaid (31/3/2016: 2024 – Do my homework – Help write my assignment online) 20,000
Doctors Honorarium 140,000
Equipment Purchase (30/9/2015 – Research Paper Writing Help Service) 30,000
Advance Tax Paid 100,000
Dividends paid 50,000
Investment in Stock of ND Co. 20,000

Additional Details:
1. NNS provides services to certain patients on a credit basis. During the current financial year, $300,000 worth of services was provided to such patients on a credit basis and $310,000 was collected from such patients. Due to poor financial condition of certain patients, $6,000 was written-off as bad debts in March 2016: 2024 – Do my homework – Help write my assignment online. $2,000 worth of previously written-off amounts was collected in January 2016: 2024 – Do my homework – Help write my assignment online. The firm wishes to maintain a balance of 5% of year-end Accounts Receivable as an allowance for doubtful debts.

2. NNS purchases all inventory of medical supplies on credit. The total purchase in the current financial year amounted to $250,000. The ending balance of inventory of medical supplies was $90,000.

3. The interest on 8% Bank Loan is accrued, but due to a computer glitch, could not be paid till 10th April 2016: 2024 – Do my homework – Help write my assignment online. The company had to pay a penalty of $10,000 along with the interest on 10th April 2016: 2024 – Do my homework – Help write my assignment online for late payment of interest. The penalty becomes due in the year of default.

4. The equipment has a useful life of 5 years and Building has a useful life of 10 years. The equipment that was sold on 31/12/2015 – Research Paper Writing Help Service was two years old at the beginning of the year and had a historical cost of $20,000.

5. Salaries for the last two weeks of March 2015 – Research Paper Writing Help Service will be paid on 5th April 2016: 2024 – Do my homework – Help write my assignment online. Such salaries amounted to $15,000. Salaries payable for previous years were paid off in the current year.

6. The prepaid insurance is valid for another 15 months starting from 1/4/2015 – Research Paper Writing Help Service.

7. Tax assessment for the years 2013-14 and 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay-15 was completed in the current year and the tax was assessed to be Rs. 100,000 for 2013-14 and 95,000 for 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay-15. Shortfall (refund), if any, was paid (received) during the year 2015 – Research Paper Writing Help Service-16. Provision for taxes for the current year is 25% of Profit before Tax.

8. 10,000 new shares were issued. The face value of shares was $1 and Market value was $20.

Based on the above information, prepare the Balance Sheet, Income Statement, and Cash Flow Statement (Use Indirect Method) for the year ended on 31/3/2016: 2024 – Do my homework – Help write my assignment online.

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Assignment 1 for MGT 278C
NNS Hospitals Ltd. is a publicly traded company that owns a hospital chain. The following is NNS’s Balance Sheet as of 31/3/2015 – Research Paper Writing Help Service:
Accounts for Liabilities and Owners’ Equity Payable 120,000 sSalaries Payable Provision for Taxes of $10,000 (2013-14) Tax Provision of $90,000 (2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay-15) 100,000 8% Bank Loan 160,000 Share Capital 400,000 Share Premium 200,000
Earnings Retained 20,000
TOTAL 1,100,000
Assets sCash
80,000 Medical Supply Inventories
Accounts Receivable: 120,000
100,000 Less: Provision for Doubtful Debts -5,000
Taxes Paid in Advance: 95,000 (2013-14)
Taxes Paid in Advance: 95,000 (2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay-15)
Prepaid Insurance for $100,000
20,000 in 10-percentage-point government bonds
200,000 sLand 150,000 sBuilding 200,000 sLess: Accumulated Depreciation -20,000 180,000 Equipment $100,000 Less: Accumulated Depreciation -40,000 60,000 TOTAL 1,100,000

The vast majority of cash payments and

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