The board of directors of Trinity Hospital is working on a five-year strategic plan for the facility. One of the strategic goals is to build a new $1 million cancer research wing in five years. The group is concerned that current economic conditions might reduce revenues over the next five years and they are uncertain about the fate of the construction project. You are part of team tasked with conducting a capital budgeting analysis. The cost of capital is 10%. Trinity Hospital reported 1.5 million in revenue in 2010 and 1.3 million in 2011. The hospital’s equity is $2 million. The hospital estimates delayed third-party payments in 2011 of $500 thousand. The hospital expects to receive $250 thousand in grants in 2011. The hospital has current liabilities include operating costs of $1 million in 2010 and $1.2 million in 2011. In addition, the hospital retired $150 thousand of debt in 2010 and 2011. The hospital funded the employee pension plan with matching funds of $150 thousand in both 2010 and 2011. Malpractice costs were $150 thousand in 2010 and 2011. Depreciation expenses of $100 thousand in 2010 and $105 thousand in 2011. The hospital is a nonprofit facility so the firm incurs no tax liabilities. Income Worksheet ASSETS LIABILITIES 2010 2011 2010 2011 OPERATING 1,000,000 1,200,000 DEBT RETIREMENT 150,000 150,00 RETIREMENT 150,000 150,00 DEPRECIATION 100,000 105,000 REVENUE 1,500,000 1,300,000 EQUITY 1,000,000 1,000,000 DELAYED PAYMENTS 500,000 GRANTS 250,000 TOTAL 2,500,000 3,050,00 1,400,000 1,605,000 Net Profit ASSETS 2010 2011 NET PROFIT 2,360,000 1,445,000 Tasks 1.Create a balance sheet based on the information provided above 2.Discuss the financial trend(s) you believe hospital administration should note in their planning. Are profits trending up or down? 3.Submit your balance sheet and discussion as a WORD document. SLP Assignment Expectations Expectations 1.Please be sure to cite all sources and provide a reference list at the end of the paper Academic paper so whole paper cited, only couple sentence per paragraph can be your words. This is what she told me When you write your academic paper, watch that absolutely everything is cited. There can be an exception for a few sentences only in the conclusion paragraph, if you summarize the ideas stated above in the body of the paper.

The board of directors of Trinity Hospital is working on a five-year strategic plan for the facility. One of the strategic goals is to build a new $1 million cancer research wing in five years. The group is concerned that current economic conditions might reduce revenues over the next five years and they are uncertain about the fate of the construction project. You are part of team tasked with conducting a capital budgeting analysis.

Trinity Hospital reported $1.5 million in revenue in 2010 and $1.3 million in 2011. The hospital`s equity is $2 million in 2011, the equity was $2.41 million in 2010. The hospital estimates delayed third-party payments in 2011 of $500 thousand. The hospital expects to receive $250 thousand in grants in 2011.

The hospital has current liabilities include operating costs of $1 million in 2010 and $1.2 million in 2011. In addition, the hospital retired $150 thousand of debt in 2010 and 2011 (though it still holds $750 thousand in debt in 2011, comparing to long-term debt of $900,000 in 2010). The hospital funded the employee pension plan with matching funds of $150 thousand in both 2010 and 2011. Malpractice costs were $150 thousand in 2010 and 2011. Depreciation expenses of $100 thousand in 2010 and $105 thousand in 2011. The hospital is a nonprofit facility so the firm incurs no tax liabilities.