, We are continuing to look at the relationship between and

, We are continuing to look at the relationship between and

, We are continuing to look at the relationship between and among the threerequired financial statements: the operating statement, the balance sheet, and thestatement of cash flows. Further, we are extending the ability todraw conclusions aboutthe financial condition of an organization based on its financial statements.
we are continuing to look at the relationship between and among the threerequired financial statements: the operating statement, the balance sheet, and thestatement of cash flows. Further, we are extending the ability todraw conclusions aboutthe financial condition of an organization based on its financial statements. Thespreadsheet that I have asked you to complete for Gotham Meals on Wheels has case data at the top. The financial statements, plus some additional financial statement accounts, are formulated based on those data. If the data change, the statements, once completed, will change as well. While Gotham is not a healthcare organization, strictly speaking, their financial statements illustrate an important setof concepts. Further, in their attempts at vertical integration, many healthcare organizations have included a mealsOnwheels type of program in their menu of services.
Please be careful when using the template that I have provided. If you want to playaround with itand you shouldsave the original so that you can come back to it if youwish. I have placed formulae in most of the cells but only data in a few. You shouldattempt to complete the financial statements by entering data in the shaded cells wherenoneexist, taking care not to delete formulae! Because I have entered the data given inthe case for the month of December, some of the statements that derive data from theDecember balance sheet may be offuntil you complete the statements.I WANT YOU TO COMPARE IT TO WHAT WAS GOING ON IN THEMENOTOMY CASE.Both organizations face a cash challenge.What happens if you extend the timeframe provided in the case?Are there patterns in anyof the financial data that you can detect?Can a balance sheet have a negative cashbalance?You will have only to review what you have already read to tackle this case. Please keep in mind that managers have alternatives and the alternatives are what you should think about when you make comparisons, as well as the conditions that gave rise, in each of the two organizations, to their projected financial conditions as the end of the accounting periods represented in the cases

 
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