March 18, 2013
Financial Data Analysis
After reviewing the balance sheet for Patton-Fuller Hospital for 2008 and 2009, there are significant differences that are noticeable. The retained earnings (or "Net Worth" or "Unrestricted Fund Balance") drastically decreased from 2008 to 2009 (Apollo Group, 2006). The dollar amount decrease is -209,471, this makes a decrease of over 65%. Long-term debt increase to more than 116% from 2008 to 2009 as well (Apollo Group, 2006). This is a massively huge increase. Total current liabilities also increase as a whole by 184.09% (Apollo Group, 2006).
Major differences are also noted on the statement of revenue and expenses. The operating income decreased by 98% from 2008 to 2009 (Apollo Group, 2006). Net income also decreased between these years by the same percentage. Non-operating income decreased by 77% as well. The total revenue and expenses all seem within normal range, but the operating income, non-operating income, and net income all have decreased and drastically (Apollo Group, 2006). The total revenue increased by 10% that is $41,668. The expenses increased by $25,869 or 5.91%. These all seem like reasonable slight increases (Apollo Group, 2006).
Many factors can contribute to why there are so many fluctuations and changes between 2008 and 2009. This information usually can be found in the organization’s annual report. Upon reviewing the Patton-Fuller Community Hospital’s annual report, I could deduct some possible explanations for the drastic change in numbers from 2008 to 2009 (Apollo Group, 2006). One possible explanations is, “Utilities and other costs - contracted maintenance, some professional fees, and computer and other usage fees - do not fluctuate” (Apollo Group, 2006, p. 3). This would be an...