Business of Radiology 101

Balance Sheet: Equity

The equity of a practice is normally divided into two main parts: capital and retained earnings.

Capital is the amount initially invested by owners or partners in the practice that hasn't yet been repaid. Retained earnings are funds that the business has decided to hold in reserve rather than pay out as dividends or bonuses. Retained earnings can be useful for future purchases or covering volatility in the need for the groups services.

				Period ending:		3/30/14					(all values represent 1,000's of $)
Total Assets					$ 5,000			Total Liability & Equity					$ 5,000
	Total Current Assets			$ 330					Total Liabilities			$ 3,450
		Cash		$ 50						Current Liabilities		$ 50
		Accounts Receivable		200							Accounts Payable	30
		Inventory		80							Accrued Liabilities	20
	Total Noncurrent Assets			4,670						Long-term Liabilities		3,400
		Net book value		3,420							Equipment Loans	2,000
			Scanners & Equipment	3,000							Building Mortgage	1,400
			Buildings	820
			Accumulated depreciation	- 400					Total Equity			1,550
		Land		1,250						Dr. Hamurabi's Equity		500
										Dr. Solomon's Equity, A		250
										Dr. Solomon's Equity, B		250
										Dr. Nebakanezer's Equity		500
										Retained Earnings		50