The company I am choosing to research is Methodist Hospital. Houston Methodist hospital is listed among other hospitals as the leading academic medical center in the Texas Medical Center and six community hospitals serving the Greater Houston area. Each hospital is staffed by committed personnel who exemplify our I CARE motto. Methodist is home to some of the world’s brightest physician- scientist, working in a collaborative environment on more than 800 clinical trials. To be honest I am not 100% sure if they are a profit or nonprofit. The purpose of the income statement is to calculate a company's net profit of loss for a given period, whether a year, a quarter or any other time frame. Income statements begin by adding total revenues for the period, including capital gains and interest income in addition to sales revenue. Next, income statements calculate and subtract the cost of goods sold to arrive at the company's gross profit. Gross profit represents the profit generated on inventory sales and other income over the cost of goods sold, before considering additional business expenses. Finally, income statements calculate and subtract additional expenses, including overhead, administrative expenses and interest payments to arrive at a company's net income.
The statement of cash flows serves much the same purpose as the income statement, with the major difference being the cash flow statement's exclusion of non-cash income and expenses. Accountants commonly begin with the net income figure from the income statement when developing a statement of cash flows. Accountants adjust net income by adding back non-cash expenses and subtracting non-cash income, arriving at a net increase or decrease in cash. Another way to construct a cash-flow statement is to begin from scratch, calculating and adding/subtracting cash flows from operating activities, investing activities