Between the years 2009 and 2008 there were multiple financial changes to the Patton – Fuller Community Hospital. Using a combination of the balance sheet, statement of revenue and expenses, and also the 2009 hospital’s annual report we are able to see how the years differ in a financial situation. This paper will explain the differences in the finances that had the largest impact on the company as a whole.
The assets of the company played a large role in the large jump of the numbers between 2009 and 2008. Between the two years there was a total change of 7.15 percent of the total asset which equaled $39,232 dollars. The largest change came from a 56.10 percent increase in the patient’s accounts receivables, a change of $21,121 dollars. Cash and cash flow equivalents equaled a 45.10 percent decrease, a change of $18,856 dollars. The inventories offered a 19 percent increase, a change of $10,026 dollars (Apollo Group, 2013). According to the annual report, there was a 1 million dollar donation that provided the hospital with an opportunity to buy new equipment and supplies (Apollo Group, 2013).
The liabilities of the company also proved to have multiple changes over time. Due to the purchase of the new equipment there has been a large increase of the debt accrued by the company according to the annual report. Borrowing became necessary to cover all the necessary equipment. The report also stated that an increase of supply purchases would save money in the long run due to the discounted cost at the time of the purchase (Apollo Group, 2013). The current long term debt increased 114.80 percent a change of $10,414 dollars. The accrued expenses also rose 119.80 percent a change of $5,013 dollars, leaving a total liability increase of 16.5 percent companywide leaving a change of $248,703 dollars. (Apollo Group, 2013).
The total equity of the company fell between 2009 and...