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Financial Statement Exercise (2.4 Action Item)

Submitted by estherkang on Wed, 2006-02-01 16:30. Study & Test Tips

I'd like to start off by saying that I am really enjoying this course. I am learning so many new things and I look forward to seeing what else you have to offer. The website is also very user friendly and I appreciate all the helpful hints. As I was moving through the course, I was a litttle confused by this Exercise. I understand what I am suppose to do as far as providing an Income Statment etc. but I guess I'm having some trouble understanding what is what on the statement itself. For example, for this exercise, am I suppose to be utilizing the information in all three column's (Patient Revenue, October 31, 2xxx and Year to Date?) Any suggestions would be appreciated. Thanks!

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Answer to Esther's Question

Submitted by Ariel Ilagan on Wed, 2006-02-01 17:54.

Thanks for the feedback Esther. As far as your question; you only need to look at the numbers under the October 31 column. I will step through an example with you to illustrate what i mean.

Example question: Use Highland's sample Income Statement to find the Net Patient Revenue for Highlands' as of October 31.

First thing you will do is find the words Patient Revenue on the Income Statement. Note that Net Patient Revenue is the same as Net Revenue or Total Patient Revenue.
Next Under the Patient Revenue Column go down until you find the line that says Total Patient Revenue
Now move directly to the right of the Total Patient Revenue line until you are under the October 31 column
Write down the number you see because you have found the answer! You have found the Total Patient Revenue as of October 31.

You will follow the same process to find the other values in the Income Statement and other statements.

If this is still unclear or if you have any other questions just create another comment or you can email tomorrow at work.

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