Skip to content
Home » Accounting Class Homework Help » Please help me with this question. First part is the problem and…

Please help me with this question. First part is the problem and…

Please help me with this question. First part is the problem and second part, the screenshot part is the requirement or working area.

Formula: Divide, Subtract; Cell Referencing
Some cells are merged.
Case 4.3. Using Excel to Assess the Debt-to Net Assets Ratio
     Goodfellow & Perkins LLP is a successful mid-tier accounting firm with a large range of clients across Texas. During 2025, Goodfellow & Perkins gained a new client, Brookwood Pines Hospital (BPH), a private, not-for-profit hospital. The fiscal year-end for BPH is June 30. Goodfellow & Perkins is performing the audit for the fiscal year-end June 30, 2026. The balance sheets as of June 30, 2026 and 2025 are presented here.
Brookwood Pines Hospital
Balance Sheet (in thousands)
June 30
Assets 2026 2025
Cash and cash equivalents  $        43,077  $       36,361
Short term investments            22,725           49,338
Patient accounts receivable, net          119,380           99,962
Current portion of pledges and grants              9,208             5,099
    receivable, net
Current portion of insurance recoverable              2,364             1,953
Inventory            10,740           10,056
Other current assets            25,792           23,193
Total current assets          233,286         225,962
Long-term investments          915,088         807,321
Property and equipment, net          576,432         538,981
Prepaid pension cost            19,760             7,248
Insurance recoverable, less current portion            11,619           10,723
Other assets, net            31,535           28,463
Total assets  $    1,787,720  $   1,618,698
Liabilities and net assets
Accounts payable  $        38,431  $       39,547
Accrued salaries and benefits            52,361           50,754
Grants payable, current portion              6,459             8,459
Accrued expenses and other current liabilities            19,209           27,380
Due to third-party payors            72,494           67,687
Current accrued liabilities under self-            15,709           14,965
     insurance programs
Current maturities of long-term debt              5,040             4,928
Short-term debt            14,550                   –
Long-term debt subject to short-term                     –           53,132
    refinancing agreements
Total current liabilities          224,253         266,852
Long-term debt, net, less current liabilities          220,796         179,530
Accrued liabilities under self-insurance            82,618           82,559
      programs, less current portion
Grants payable, less current portion            13,245           16,489
Other liabilities            42,669           48,336
Total liabilities          583,581         593,766
Net assets
Without donor restrictions       1,138,140         962,652
With donor restrictions            65,999           62,280
Total net assets       1,204,139      1,024,932
Total liabilities and net assets  $    1,787,720  $   1,618,698
      BPH provides medically necessary care to patients, regardless of their ability to pay. Both uninsured and underinsured patients are offered discounts of up to 100% of charges based on their income as a percentage of the federal poverty-level guidelines. BPH does not pursue collection of these accounts; therefore, they are not reported in patient service revenue and accounts receivable. The cost of providing the charity care is included in operating expenses.
     BPH’s investments consist of mutual funds, common equities, corporate and U.S. government debt issues, state and municipal government debt issues, and trusts. A majority of the investments are the result of charitable contributions to the hospital by generous donors. Earnings from the investments are used to cover the costs of the charity care. BPH is also eligible for certain government grants to help cover the costs of the charity care. Selected financial statements and other financial information are provided below. Since BPH operates as a non-for-profit, it reports assets, liabilities, and net assets. (Note: Net assets takes the place of equity since there are no owners.)